Tax-free Interest

Up_Under1

• Hi there,

• Does this apply to a pensioner?

• Low earnings & savings interest. If you've an income under £12,570, the starting rate for savings lets you earn up to £5,000 in interest tax-free. For each £1 you earn above £12,570, you lose £1 of the allowance (so nowt if you earn £17,570+).

• Thanks,

• (Removed by Forum Team)

Dazed_and_C0nfused

Up_Under1 said:

• Hi there,

• Does this apply to a pensioner?

• Low earnings & savings interest. If you've an income under £12,570, the starting rate for savings lets you earn up to £5,000 in interest tax-free. For each £1 you earn above £12,570, you lose £1 of the allowance (so nowt if you earn £17,570+).

• Thanks,

• (Removed by Forum Team)

ISA's are tax free.

Non ISA interest is taxable.  But some of it might be covered by the Personal Allowance or be taxed at a 0% rate.

Ignoring dividends it's possible for someone to have income of £18,570 and pay no tax.

But as ever tax is all about the detail and you haven't really provided any to know the full picture.

eskbanker

Up_Under1 said:

• Does this apply to a pensioner?

Pensioners aren't treated any differently from everybody else, as far as taxation is concerned, although that may change in the future.