Income From Savings

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  • They deduct income at source at 20% .
    ...............................I have put my clock back....... Kcolc ym
  • robnye
    robnye Posts: 5,411 Forumite
    First Anniversary Combo Breaker
    Thank you for the replies.
    My dad pays a small amount of income tax due to having a state pension AND a private pension. Was I incorrect in thinking,  that as the building Society deducted the tax at source, that it would not mean that he would have to pay Tax again on the interest?

    yes, you are correct it your thinking.
    once tax is deducted at source by the building soceity before any interest is paid, your dad will not recieve a bill for any additional tax.

    so easy to have said yes, and the answer would be right in both cases....... very confusing... :)
    smile --- it makes people wonder what you are up to.... ;) :cool:
  • Norman-B
    Norman-B Posts: 1,638 Forumite
    First Post First Anniversary Combo Breaker
    Thank you.
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