We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Which type of Saving account is consider Personal Savings Allowance?
alandaniel132
Posts: 479 Forumite
Which type of Saving account is consider Personal Savings Allowance?
Is ISA saving account consider Personal Savings Allowance?
And is Children account consider Personal Savings Allowance?
Is ISA saving account consider Personal Savings Allowance?
And is Children account consider Personal Savings Allowance?
0
Comments
-
An ISA is not considered, any income is not taxable.
A children's ISA is, if there is more than £100 interest.0 -
There's a good explanation of taxation on child savings accounts here:
https://www.moneysavingexpert.com/savings/child-savings-tax-free/#taxing
Short answer, it depends on where the money has come from.
My understanding is a Junior ISA has the same tax treatment as an adult ISA and therefore no tax is payable, even if there is more than £100 interest.0 -
So Children saving account, have interest more than £100 is Personal Savings Allowance?
https://www.gov.uk/government/publications/personal-savings-allowance-factsheet/personal-savings-allowance#what-counts-as-savings-income
and
3. If your taxable income is less than £17,500
If your total taxable income is less than £17,500 you will not pay tax on any savings income.0 -
If the money has come from a parent or step parent, the interest is treated as having been earned by that parent and comes out of their allowances.alandaniel132 wrote: »So Children saving account, have interest more than £100 is Personal Savings Allowance?
https://www.gov.uk/government/publications/personal-savings-allowance-factsheet/personal-savings-allowance#what-counts-as-savings-income
and
3. If your taxable income is less than £17,500
If your total taxable income is less than £17,500 you will not pay tax on any savings income.0 -
Personal Savings Allowance
Earn up to £1,000 savings interest tax-free
https://www.gov.uk/government/publications/personal-savings-allowance-factsheet/personal-savings-allowance#what-counts-as-savings-income
1. Introduction
From 6 April 2016, if you!!!8217;re a basic rate taxpayer you!!!8217;ll be able to earn up to £1,000 in savings income tax-free.
Is £1,000 interest earn from any saving account is calculate per year or per month?0 -
Per year.................alandaniel132 wrote: »Is £1,000 interest earn from any saving account is calculate per year or per month?0 -
The standard Personal Allowance from 6 April 2017 to 5 April 2018 was £11,500.
So less than £11,500 interest earn per year for any saving account (children account where money given by parents) , no need to pay tax.
confuse, is £1,000 or £11,500?0 -
alandaniel132 wrote: »The standard Personal Allowance from 6 April 2017 to 5 April 2018 was £11,500.
So less than £11,500 interest earn per year for any saving account (children account where money given by parents) , no need to pay tax.
confuse, is £1,000 or £11,500?
The personal allowance is different to the personal savings allowance. They are 2 different things.0 -
If you, as the parent of a child, is unemployed and have no other income, you have both the £1,000 personal savings allowance and £11,500 personal allowance (and £5,000 nil rate band on savings) to use against any savings interest you and the child earn.alandaniel132 wrote: »The standard Personal Allowance from 6 April 2017 to 5 April 2018 was £11,500.
So less than £11,500 interest earn per year for any saving account (children account where money given by parents) , no need to pay tax.
confuse, is £1,000 or £11,500?
If you, as the parent of a child, are employed, you have just the personal savings allowance of £1,000, unless you are on a low income in which case if your income from employment and savings interest combined is less than £17,500 you won't pay tax.0 -
If you, as the parent of a child, are employed, you have just the personal savings allowance of £1,000, unless you are on a low income in which case if your income from employment and savings interest combined is less than £17,500 you won't pay tax.
On the interest.
You would still have to pay tax on employment income above £11,500 (£11,850 current tax year).0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.6K Banking & Borrowing
- 254.2K Reduce Debt & Boost Income
- 455.1K Spending & Discounts
- 246.7K Work, Benefits & Business
- 603K Mortgages, Homes & Bills
- 178.1K Life & Family
- 260.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards