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Posted Fri, 14 Apr 2023 11:05:53 GMT by n sal
If during the current 2023/4 tax year my only non saving income is from a £12000 pension and I also earn £7000 savings interest ( from banks/building societies) as well as £1200 from UK dividends then am I correct to think that: A) I would benefit from the " 0% starting saving rate" on £5000 of the interest due to my low pension income as well as the £1000 personal saving allowance and therefore only pay 20% basic rate income tax on £430 , which is the balance of (£ 12000 pension plus £7000 interest) MINUS£18570 (the £12570 personal allowance plus the £5000 starting rate band plus the £1000 personal saving allowance)? B) I would pay 8.75% dividend tax rate on £200 ( the excess of the £1200 dividend above the £1000 dividend allowance)? Thank you.
Posted Wed, 19 Apr 2023 08:08:17 GMT by HMRC Admin 8
You are correct.
Thank you.

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