Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Sat, 14 Sep 2024 10:56:46 GMT by sazpjr
Hi. When I Include my savings interest of £7000 (that which is above the £1000 allowance) in my total income, my total income exceeds the £50K+ threshold for paying 40% tax, but only by approximately £1000. Do I pay 40% tax on all the interest (£7000) or just the amount that is above the £50K allowance threshold? My numbers suggest that I am a higher rate tax payer and therefore pay the higher rate on my savings but all of it………?
Posted Tue, 24 Sep 2024 10:40:42 GMT by HMRC Admin 21 Response
Hi,
You will only pay the higher rate tax on the income in the higher rate tax band. You can check the tax bands at:
 Income Tax rates and Personal Allowances.
Thank you.

You must be signed in to post in this forum.