Tax on Savings Interest

Hello! I have no income currently but will start taking pensions upto £12,570 this year. I also have some savings generating interest: - How much interest income can I have outside the pension income and ISA that will not be taxed? - If I do not take the pension income for this year of £12570 how much interest income can I have outside ISA that will not be taxed/ Thank you!

Hi, I am in a similar situation. I think that ... You get £12570 tf alow, this can be used for income or for just interest or for both. You also qualify for the £5000 pa starting rate, which means £5k of interest tax free. You get a further £1k tax free on top of all of this which is the standard allowance. Hope this help, Martin

Thanks, Martin. So the tax free allowance I would effectively have for the year is 12570 plus 5000 plus 1000= 18,570?

Hi F L,
The Personal Savings Allowance is a 0% rate that applies to up to £1,000 of an individuals savings income, such as interest, a year. The allowance is reduced to £500 a year where an individual has higher rate income, and nil where an individual has additional rate income.
Any income from an ISA or subject to the 0% starting rate for savings does not count towards this Personal Savings Allowance.
Thank you.

Hi FL,
The personal allowance is £12570. The £5,000 is the starting rate for savings. The £1,000 is the persoanl savings allowance.
Thank you.

Thank you. May I just clarify that: If I have zero other income for the tax year and I start taking pension income of £12570 for the year then: - The income of £12570 would be tax free AND: - I could have an additional: - £1, 000 of interest income tax free and - £5,000 of interest income tax free - so the total interest on income I could claim tax free would be £6,000 OR is it that I have interest income of £6,000 tax free and also £6,570 of other income tax free to total the tax free allowance of £12,570. Would appreciate your clarification. Thanks

Hi F L,
You are correct. 
Thank you. 
 

Hi I was paid by the bank £2145.01 of interests on my savings. Am I correct to say this is tax free as below £5000? Being on a £24,500 a year job which is my sole source of income, how much money from interests on savings can I have before having to pay tax on it? Thank you!

Hi Heraclitus
As your income is over £17570 you would not be entitled to the £5000 starting rate for savings. You would be entitled to the £1000 personal savings allowance.
Tax on savings interest
Thank you.

Hi How should I declare and pay taxes on these £2145.01 of interest on my savings? Does this have to be done on a particular date of the calendar? Thank you

Hi Heraclitus
The banks and building societies submit the untaxed interest details to HMRC after the tax year end.
Once received we will review the tax year and if underpaid a calculation will be issued with the details. 
Thank you. 

Hi, I have no other income but only interest from saving with amount £16000. Should the personal allowance and the starting rate cover the interest income? Tia

Hi Ffn, Yes, that would be correct. You can see guidance here: Tax on savings interest Thank you.

HI I currently draw down £7570 from my pension. I then gain interest totalling £5000 from savings (bonds). I have no other income I currently claim back the interest automatically deducted by the building society from HMRC however, am I correct in my understanding that I can actually get £10000 from savings interest (bonds). Using the £5000 first savings tax allowance. Personal tax allowance of £12570 + £5000 = £18,570 Also, if this is correct can I effectively get this every FY Another scenario (apologies for my ignorance) COULD I draw down £12570 and not pay any tax on £5000 of interest on savings - in fact is this £6000? Bit confused

Hi Chris,
So long as your pension income does not exceed your £12,570 allowance, the remainder of this allowance (after your pension income), plus the £5000 personal savings allowance, plus £1000 starting rate for savings, can be applied to your savings interest. So, in your case, you can receive £11,000 savings interest tax free.
Tax on savings interest  
Thank you.

Hi, I am a non-UK resident and now living in Hong Kong. I'm going to open a bank saving account in Jersey but I don't have any other income in UK. Do I need to pay and report tax in UK for all future bank interest earnings from Jersey? Thank you.

Hi Olive,
If you only receive bank interest from Jersey, and do not receive any UK employment, pensions or savings income, you would not need to file a Self Assessment or report your income to us, as Jersey is not a part of the UK. 
Thank you.

Hi HMRC Admin, Thank you so much to your good adice. Regards, Olive

Currently I have transferred some of my Personal Allowance to my wife as I don't use it all but its possible that I may need to make use of the Starting Savings Rate allowance - do I need to stop the transfer of the allowance as in effect I could use the standard £12750 or will the Starting Savings Rate just start at a lower figure (with a corresponding lower total limit too of course) and my transfer stay in place?

Hi MrMagoo
The savings rate would still apply as long as you still meet the conditions required.
Thank you.