Which type of Saving account is consider Personal Savings Allowance?

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alandaniel132
alandaniel132 Posts: 476 Forumite
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in Savings & investments
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?
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  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    An ISA is not considered, any income is not taxable.
    A children's ISA is, if there is more than £100 interest.
  • masonic
    masonic Posts: 23,276 Forumite
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    edited 9 August 2018 at 8:54PM
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    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.
  • alandaniel132
    alandaniel132 Posts: 476 Forumite
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    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.
  • masonic
    masonic Posts: 23,276 Forumite
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    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.
    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
    alandaniel132 Posts: 476 Forumite
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    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?
  • masonic
    masonic Posts: 23,276 Forumite
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    alandaniel132 wrote: »
    Is £1,000 interest earn from any saving account is calculate per year or per month?
    Per year.................
  • alandaniel132
    alandaniel132 Posts: 476 Forumite
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    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?
  • mije1983
    mije1983 Posts: 3,665 Forumite
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    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.
  • masonic
    masonic Posts: 23,276 Forumite
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    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, 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.

    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.
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
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    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).
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