Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Thu, 21 Apr 2022 11:22:19 GMT by MarkD22
HMRC, in https://www.gov.uk/apply-tax-free-interest-on-savings, state "Starting rate for savings You may also get up to £5,000 of interest and not have to pay tax on it. This is your starting rate for savings. The more you earn from other income (for example your wages or pension), the less your starting rate for savings will be." Please can someone advise whether income, is defined as non-savings taxable income (rather than combined non-savings income and savings interest); i.e., does savings interest count towards the other income calculation for the starting rate for savings? Specifically, if someone is living off of savings interest only, with no income and the interest is greater than the annual sum of the personal allowance (£12,570), starting rate for savings (£5,000) and personal savings allowance (£1,000) totalling £18,570 will they receive the starting rate for savings (£5,000)? All but one article I found from an internet search define income as combined non-savings income and savings interest. The following link defines as non-savings taxable income [admin removed link]
Posted Mon, 25 Apr 2022 11:54:04 GMT by HMRC Admin 18
Hi,

You would be entitled to the Starting rate for savings. When determining eligiblity for the starting rate, it is based on non-savings income.

Thank you.

 
Posted Mon, 25 Apr 2022 14:47:11 GMT by MarkD22
Thank you for confirming my understanding.

You must be signed in to post in this forum.