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07-02-2016, 07:52 PM
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Tax free savings from April 2016

Money Mail found that most major savings providers are yet to inform customers about the perk, which starts in April, and the information they do provide on their websites is wrong.

Many are telling savers 20 per cent tax will continue to be deducted automatically from their interest. But this is not the case.


Read more: http://www.thisismoney.co.uk/money/s...#ixzz3zVcnsCL4
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08-02-2016, 12:52 AM
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Re: Tax free savings from April 2016

Two things to note:

1
From April 2016 banks and building societies will stop automatically taking 20% in income tax from the interest earned on your non-ISA savings.
2
To be eligible for the £1,000 tax-free Personal Savings Allowance your taxable income needs to be less than £42,700 a year.

To be eligible for the £500 tax-free Personal Savings Allowance your taxable income needs to be between £42,701 and £150,000 a year.
I must do the maths sometime soon .....
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08-02-2016, 10:45 AM
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Re: Tax free savings from April 2016

Well done to the Torys and not before time too.

Might not go far enough.

Could never understand why the savings that you have earned interest on should be taxed.
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08-02-2016, 10:50 AM
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Re: Tax free savings from April 2016

All very good news but....how will it affect joint accounts if two people share the interest ?
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08-02-2016, 10:51 PM
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Re: Tax free savings from April 2016

I think the interest will be split in half Malcolm. OH is a taxpayer and I'm not so he pays tax on his half and I don't pay any tax on mine.
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08-02-2016, 11:08 PM
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Re: Tax free savings from April 2016

More information available from:

http://www.moneysavingexpert.com/sav...x-free-savings
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09-02-2016, 12:59 AM
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Re: Tax free savings from April 2016

Be a bit pointless taking out an ISA if there's not going to be tax on interest kept in an ordinary account the interest rates on ISAs being abysmal in any case.
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09-02-2016, 08:14 AM
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Re: Tax free savings from April 2016

Originally Posted by Judd ->
Be a bit pointless taking out an ISA if there's not going to be tax on interest kept in an ordinary account the interest rates on ISAs being abysmal in any case.
Yes but just might be 1% higher than an ordinary account.
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13-02-2016, 07:48 PM
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Re: Tax free savings from April 2016

I'll be interested to see what happens for non-residents. I wasn't allowed to register in the standard way to receive interest tax-free as I am not a UK resident. Bet they will still take tax from me at source, even though it's peanuts. It's a pain to have to claim it back though.
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21-02-2016, 10:09 PM
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Re: Tax free savings from April 2016

I had a Guaranteed Equity Bond mature this month. When I got the letter it showed tax deduction. Gah!!!

I have one more maturing in May: hopefully I should get all the interest tax free on that one. Pity this recent one matured too early.
 

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