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Posted Thu, 15 Feb 2024 09:43:13 GMT by
For the tax year 23/24: I'm a pensioner and my state pension will total £4950. I will have interest on savings of £2300. I'm going to encash part of an offshore savings bond which will cause a chargeable event of £11,300 Total income will be £18,550. Will this be covered by the savings allowance (£5000) and the personal savings allowance (£1000) as well as the personal allowance (£12,570) so there will be no tax to pay? But, I'm not sure if the chargeable gain can be put against the two savings allowances. I can reduce the chargeable event to under £7620) so it is covered by the personal allowance less the pension income (£12570 - £4950 = £7620). Am I right in thinking that a chargeable gain of £11300 will still leave me no tax to pay? If not, will a chargeable gain of under £7620 leave me with no tax to pay? Guidance appreciated.
Posted Tue, 20 Feb 2024 10:23:03 GMT by HMRC Admin 5

Yes the gain would be covered by the starter rate and excess allowances. no tax wold be due on those figures.

Thank you

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