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Posted Tue, 18 Jun 2024 15:48:58 GMT by Hookman04
I have had my tax allowance reduced due to untaxed interest from savings and investments. My income is from 2 company pensions which is much less than the annual allowance of £12570 per annum my understanding is that this should allow me £5000 tax free interest from which is significantly above what I get. How do I get this clarified/ rectified?
Posted Mon, 24 Jun 2024 09:19:57 GMT by HMRC Admin 32 Response
Hi,

Bank interest under the Personal Savings Allowance & Starting Rate for Savings will only reduce your tax-free allowances if this reduction does not then cause you to pay tax on your regular employment or pension income.
If you are finding that your pension income is now being taxed as a result of this bank interest deduction, and the Personal Savings Allowance & Starting Rate for Savings have not been automatically applied, contact our Self Assessment team, and we can review your code.

Self Assessment: general enquiries

Thank you.

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