sazpjr
Joined: 9/14/2024
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Tax on savings higher tax band
Hi. When I Include my savings interest of £7000 (that which is above the £1000 allowance) in my total income, my total income exceeds the £50K+ threshold for paying 40% tax, but only by approximately £1000. Do I pay 40% tax on all the interest (£7000) or just the amount that is above the £50K allowance threshold? My numbers suggest that I am a higher rate tax payer and therefore pay the higher rate on my savings but all of it………?