Non-Working partner - Savings tax allowance

Mikeyorks

Both those links to the 10% band are outdated - as they actually refer to the 10% tax band in general existence for 07-08 and prior.

But the general principle is right as there is a new 10% band for savings income only from 08-09 .... but it is (confusingly as it appears to be a transposition of the old £2230) ...... £2320.

So this potentially sits on top of the (zero rated) personal allowance ... but is, as the quote from HMRC qualifies, only of use if your savings income hits that zone. For most people it won't as 'savings' is your top income slice ... and sits on top of earnings / pension etc. And, no .... you can't opt to re-profile it!

There will be a new 10% starting rate for savings income only, with a limit of £2320. If an individual’s taxable non-savings income is above this limit then the 10% savings rate will not be applicable.