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Posted Tue, 12 Nov 2024 07:53:34 GMT by PAD1970
Hi I have read the guidance on the 'Tax on savings interest' page and understand the rule regarding other income exceeding £17,570 reducing the starting rate for savings to £0. My question relates to the definition of 'other income' as the HMRC page states "The more you earn from other income (for example your wages or pension), the less your starting rate for savings will be." My wife's salary and savings interest is below the personal allowance; but dividend payments exceed £20,000. Do we include dividend payments when calculating 'other income' for the assessment against the starting rate for savers? Thanks
Posted Wed, 13 Nov 2024 10:21:41 GMT by HMRC Admin 8 Response
Hi,
No, dividend income would not be included. 
Thank you.
Posted Wed, 13 Nov 2024 10:47:12 GMT by PAD1970
Great. Many thanks for the response.
Posted Sat, 08 Mar 2025 08:36:39 GMT by Colin Jones
My question relates to the definition of 'other income' as the HMRC page states "The more you earn from other income (for example your wages or pension), the less your starting rate for savings will be." If my only income during the year has been a pension commencement lump sum (tax free) of £50k, £12k taxable pension income and interest earned on savings, will I still be able to take advantage of the starting rate for savings on the interest which takes me over my personal allowance or is the PCLS amount treated as “income”?
Posted Wed, 19 Mar 2025 10:19:29 GMT by HMRC Admin 8 Response
Hi,
Please refer to the following link:
Tax on savings interest
Thank you

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