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Posted Sat, 28 Oct 2023 17:07:36 GMT by AndyPG
Hi, Does marriage allowance impact savings starting rate. ie; (My personal allowance is £12570) If I earn £13570 pa and I receive £5000 of savings interest pa, I only get tax relief on £4000 of my savings interest. If I use marriage allowance to gain tax relief on the £1000 of income I earn above my personal allowance, will I then get the full £5000 savings starting rate relief on the savings?
Posted Fri, 03 Nov 2023 13:35:56 GMT by HMRC Admin 20
Hi AndyPG,
No the marriage allowance does not impact the savings starting rate.
The savings starting rate is £5000 above the personal allowance £12570.
Thank you.
Posted Fri, 03 Nov 2023 15:51:39 GMT by AndyPG
Thanks but I'm still unclear on my exact question. To put things another way, If my personal allowance is £12570 and I also have £1000 of marriage allowance, will the first £18570 of savings interest be tax free if I have no other income?
Posted Tue, 14 Nov 2023 11:47:13 GMT by HMRC Admin 19

No, the amount for Marriage Allowance would not be added on. It entitles you to a fixed deduction off your overall tax liability.

You would be entitled for the starting rate for your income above the Personal Allowance of £12570, and the Personal Savings Allowance if required. You can see guidance here:

Tax on savings interest

Thank you.

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