Savings Income

I have a modest income consisting of the state pension, a private pension and some bank interest. I think I heard there were some changes announced that might affect me. Can you tell me more about them please? 

1st March 2015

The government announced at Budget 2014 that from April 2015, it would replace the 10% ‘starting-rate’ of tax for savings income with a new 0% rate.

Furthermore, the amount of savings income that the new 0% rate applies to is increased from £2,880 to £5,000.

This means that if your total income (things like wages, pension, benefits and savings income) is less than £15,600, you will be eligible to register with your bank or building society to receive some or all of your savings income tax-free. 

By Jo Nockels

Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Call us today to make an appointment at your local office

0800 0523 555

Or submit an enquiry