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Saving on Interest

Win CHAN
Posted Fri, 12 May 2023 21:59:30 GMT by Win CHAN
May I know if my ONLY income is from saving interest which is over GBP 5000 allowance and I am retired. 1. How much should i pay for the interest tax? 2.Do I only need to pay when the interest from saving is over GBP17570 (starting rate of interest GBP5000 + Personal allowance GBP12570)? 3. If in the coming year, I find a part time job with GBP6000 income, can the unused personal allowance of GBP6570 (GBP12570-6000) and the starting rate of interest GBP5000 be taken together so that I only need to pay tax on interest if my saving from interest is over GBP11570 (GBP6570 + 5000) ? I tried to find the answers from many sources but couldnt be able to sort it out. Would anyone please help? Thanks.
HMRC Admin 10
Posted Fri, 19 May 2023 12:46:46 GMT by HMRC Admin 10
Hi
The Personal Allowance is alway used first.
If your non-savings income does not use the full Personal Allowance then the remainder will be used towards the savings income.
You are correct that the starter rate would then be used depending on your income.
Thankyou.

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