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Starting Rate for Savings - Interest

Answer
Posted Thu, 04 Jan 2024 10:26:05 GMT by
Hi, For the Tax year 2023-2024, I will have a Gross income (pension) of £12,600 pounds and will have interest maturing during the same tax year of £10,426 (which are from joint fixed rate accounts so split between two tax payers equates to £5213 for myself). The total pension and split amount of interest earned is £17,813. Am I right in my assumption that the £17,813 is tax free due to '0% Starting Rate for Savings' being £5000 and my 'Personal Allowance' being £1000? Secondary, do I need to inform HMRC of the interest earned/split or will the banking institutions do this automatically. Thankyou
HMRC Admin 25 Response
Posted Thu, 11 Jan 2024 08:15:48 GMT by HMRC Admin 25 Response
Hi Davo1234 Harris,
Yes you are correct.
If all the interest is from banks and building societies, they notify HMRC direct.
If from any other source (not ISA) then yes you need to tell HMRC.
Thank you. 

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