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  • RE: How to tax on my interest, 40% or 20%

    Thank you for your reply. I want to know if bank savings interest is my only income. And the amount is in the higher rate tax band. I would like to know if the interest on savings is taxed in the same way as income, i.e. after deducting all available allowances, the assessed amount is calculated at the basic rate of 20%, up to £50,270, and the remaining balance is calculated at 40% for the higher rate. Thank you.
  • How to tax on my interest, 40% or 20%

    Good morning, I would like to ask for how to do the tax calculation. For example, I only earn interest from bank and no other income or pension, and the annually interest amounted to GBP 5,5270. I want to know whether the whole amount is taxed on 40% or the first GBP 5,0270 is taxed on 20% and the remaining GWP 5,000 is taxed on 40%. Your answer to the question is much appreciated. Thanks.