Does Loan Interest count as savings income.
r3218
Posts: 8 Forumite
in Cutting tax
Hi,
I have an investment which involves making a loan to a company and receiving a monthly interest payment from them. The payments are net of 20% tax. Would this qualify as savings income so that I could reclaim the tax on the first £1000 ? I'm a basic rate tax payer.
thank you.
I have an investment which involves making a loan to a company and receiving a monthly interest payment from them. The payments are net of 20% tax. Would this qualify as savings income so that I could reclaim the tax on the first £1000 ? I'm a basic rate tax payer.
thank you.
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Comments
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If by reference to £1,000 you mean the Personal Savings Allowance tax rate then yes it sounds like income which this would apply to.
But as a basic rate tax payer are you also able to benefit from the £4,999 starter savings rate band which you may have available? This is a different 0% tax rate which applies before the Personal Savings Allowance comes into play.0 -
I have an investment which involves making a loan to a company and receiving a monthly interest payment from them.
https://www.gov.uk/government/publications/deduction-of-income-tax-from-savings-income/deduction-of-income-tax-from-savings-income
I think you should check the situation relating to your particular arrangement with HMRC.0 -
Thank you but, as I understand it, I earn well above the starter savings rate.0
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Thanks. Have read all the HMRC stuff but you need a law degree to understand it. Think the safest option is to give them a ring.
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