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Posted Wed, 30 Aug 2023 17:27:18 GMT by Doodle Walker
Hi, My annual private pension is £4,800 a year. I'm hoping to invest in NS&I savings and receive approximately a further £12,000 interest. I am not due to receive a state pension for 5 years and I am not employed. My tax allowance is £12570, can I then use the £5,000 Starter Rate for Savings and the £1,000 PSA to reduce any tax due? I've worked out my total income is probably about £16,800. Thanks
Posted Tue, 05 Sep 2023 07:36:47 GMT by HMRC Admin 19
Hi,

You would be entitled to the starter rate due to the level of your non-savings income. You will be required to complete a Self Assessment tax return if your savings interest is above £10,000 in a year. You can see guidance here:

Tax on savings interest

Thank you.
Posted Tue, 14 Nov 2023 12:06:30 GMT by clueless7489
Hi HMRC, I have £0 income,only savings interest. I don't claim anything,no pension & i am single,retired. What is the max savings interest i can receive in the 2023/4 tax yr before being liable for tax? Is it £17,570 or £18,570? Also on fixed rate bonds interest is tax liable on the year of access to the interest. So a 5 yr fixed rate bond that pays interest annually into the fixed rate acc,but interest is only accessible on maturity at yr 5 is the point of tax liability? Thankyou..
Posted Tue, 14 Nov 2023 14:26:59 GMT by HMRC Admin 17

Hi,
 
For 23/24 it is £17570 as you have no other income.

For the fixed rate bond, as you cannot access the interest, you will declare this in the year of maturity .

Thank you. 
Posted Wed, 06 Mar 2024 17:49:31 GMT by Terence Wilson
Hi, my wife recently retired and has no pension or regular income. She is living off my private pension and her only income is interest on her savings. As she has no other income, I understand that she can receive up to £17,570 in savings interest without paying tax. Is this correct? Also would she have to submit a self assessment tax return if her savings interest is below £17,570. This is not clarified on the ‘Tax on savings interest’ information on the Gov.uk website. Thank you
Posted Thu, 07 Mar 2024 11:21:09 GMT by HMRC Admin 25
Hi Terence Wilson,
That is correct.
If the interest generated is over £10,000 a tax return is required.
Thank you. 
Posted Mon, 20 May 2024 11:06:36 GMT by 2005WL mearns
My current income is my state pension of £5374 and savings interest projected to be £6700.00. What is the maximum savings interest I can receive in 2024/2025 before being liable to tax? Any help much appreciated.
Posted Thu, 23 May 2024 10:51:11 GMT by HMRC Admin 19
Hi,

Any unused tax free personal allowances can be applied to savings interest, and you may also benefit from the starting rate for savings allowance of £5000, and the tax free Personal Savings Allowance of £1000. You can see guidance here:

Tax on savings interest

Thank you.
Posted Fri, 24 May 2024 08:16:55 GMT by shackers91
Hi, I have a couple of scenarios i'm trying to wrap my head around. Firstly, my income is £20,000, I contribute £16,000 to a pension. Therefore, I have a net adjusted income of £4,000. If I then have savings of £10,000 would the first £8,570 of that be within my personal allowance and the remaining £1,530 be within my starter savings allowance? Or to go further if my net adjusted was £4,000 after pension contributions and i got £14,570 of interest would that then fall within my personal allowance, starter savings allowance and personal savings allowance? Secondly, more similar to the others in this thread. If I have £6,000 income (no net adjustment) and get £12,570 in interest would be within my allowances, so no tax to be paid? I understand interest over £10k would require a tax return. Look forward to hearing from you. Kind Regards 

Name removed admin .
Posted Fri, 24 May 2024 21:31:25 GMT by Bobby Dazzler
Hi My situation is the other way round. I earn just under £17k in savings interest and £7,700 in pension. Can I still claim the £5,000 allowance on my savings? Plus the £1,000 savings allowance? My tax code is 1257L and I have no other income. Thanks
Posted Sun, 26 May 2024 14:49:31 GMT by Oliverps46 Oliver
I have bonds maturing in the future that will incur tax. If instead of having the interest paid I reinvest it all into another fixed term bond will I be liable for tax in the year it first matures? Or because I have not withdrawn any money will tax be due when the reinvestment bond matured in future years? Thanks
Posted Wed, 29 May 2024 13:11:13 GMT by HMRC Admin 5
Hi shackers91

If your income is £20,000 then you would be entitled to the personal savings allowance £1000. Please see Tax on savings interest

Thank you
Posted Wed, 29 May 2024 14:45:28 GMT by HMRC Admin 5
Hi 

Yes that would be correct. As your saving interest is over £10,000 you would need to complete a Self Assessment tax return. 

Thank you
Posted Thu, 30 May 2024 10:45:30 GMT by Paulie
I have no employment, pensions & I don't claim any benefits. My sole income is from interest on savings and share dividends. I have transferred the marriage allowance to my wife so my allowance would be £11310. Whilst checking online, I notice that my annual tax-free amount for 24/25 shows as being £9850 due to untaxed interest on savings and investments equalling £1460. Where would this figure come from? How much would I have to 'earn' from interest/dividends before I would start to pay tax? I thought it would be personal allowance plus £1000 equalling, for me, £12310.
Posted Tue, 04 Jun 2024 08:15:06 GMT by HMRC Admin 21
Hi Oliverps46 Oliver,
Saving bonds interest is taxed in the year that it is made available to the you as the customer.
Thank you.
Posted Wed, 05 Jun 2024 07:39:59 GMT by HMRC Admin 20
Hi Paulie,
Banks and building societies send details of untaxed interest to HMRC after the tax year end.
This figure would be used as an estimate going forward in your tax code.
As you are not due to pay tax the interest is shown as a deduction in your tax code.
If your circumstances change and you were due to pay tax the personal savings allowance would then be included.
If you think your tax code is incorrect you can contact HMRC to review https://www.gov.uk/government/organisations/hm-revenue-customs/contact/income-tax-enquiries-for-individuals-pensioners-and-employees Income Tax: general enquiries.
Thank you.
Posted Tue, 11 Jun 2024 05:25:59 GMT by Nataliya
Hi I don't work and my income is £0, all I have is money in savings accounts and I plan to live off the interest from my savings. My personal allowance is £12,570 and am I correct in my understanding that I am entitled to a Starting rate for savings of £5,000 and I can have income from my savings of up to £17,570 (12570+5000) tax free? Thank you.
Posted Wed, 12 Jun 2024 11:37:35 GMT by Johnny Li
Hi, Please may I know whether oversea savings interest is also entitled to the starting rate for savings allowance of £5000? Thank you
Posted Thu, 13 Jun 2024 15:44:57 GMT by HMRC Admin 20
Hi Nataliya,
Yes that would be correct.
Thank you.
Posted Thu, 13 Jun 2024 18:57:22 GMT by Jeannie
Hi there I have an LPA for my Grandad and am trying to work out whether I need to do a tax return for him for 23/24. I have calculated that he earned income of £20500 from two company pensions and his state pension. He also earned £3750 in savings interest and £40 in dividends. I am planning to try and get better interest rates for his savings account but not sure how much he can earn in interest before I have to do a tax return for him. Many thanks

[Display name amended - Admin]

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