Amy King
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RE: Personal Allowance Vs Dividends Allowance clarification needed
Property income - 12,200 GBP - covered by personal allowance of £12,570 no tax owing Banks Savings (interests) - 1,300 GBP - covered by starting rate for savings tax as your total taxable income is below £17,570. The first £5,000 of bank interest is taxed at 0% The tax office website is never written simply! If you put your figures into your tax return and look at the calculation before submitting, there shouldn't be any tax owing. -
RE: Personal Allowance Vs Dividends Allowance clarification needed
The interest would actually come under the starting rate for savings, as your other income is below £17570. Therefore you can earn up to £5,000 in savings interest before tax would become due. https://www.gov.uk/apply-tax-free-interest-on-savings Based on your figures above, no tax would be owing.