Tax Confusion

[Deleted User]

Hi

I have some saving that I have decided to cash in. They have been wasting away in poor funds for some time now.

Anyway, one of the policies is fo £29K and there are some others to follow, £7K and £18K.

Until I decide on how best to invest this money it will be transerred to my current account. How much can I keep saved before having to worry about tax?

Thanks in advance folks.

Lokolo

Are you working?

If not you have your personal allowance, say this is £5220, and interest you are getting is 5% (for example), means you have to have £104k before you get more than £5220 in interest a year and therefore, pay tax.

[Deleted User]

Yes

working, earn around £34K p/a will this affect?

Thanks for the reply

Lokolo

Ah, that means you pay tax on your savings... 20% for you goooone.

Open up an ISA, stick £3600 in, thats at least £3600 tax free. And keep doing so for years and years and years... orrrrrr spend it like crazy!

debbie42

You will pay tax on your savings interest, but at that level you will be within the normal 20% band. This is deducted at source by the bank.

CLAPTON

why leave it in your current a/c... it will probably make minimum interest there... so move it to a saving a/c asap and benefit from the interest