New Savings Tax Rules from April 16
Posted: Thu 25 Feb 2016 11:47 pm
From 6 April, most UK adults will be able to earn up to £1,000 interest a year on their savings without paying tax on it. This is the biggest savings shake-up for a generation, meaning 95% of people won't pay tax on savings.
Currently for every £100 interest earned, basic-rate taxpayers lose £20 in tax, higher rate £40. Yet from 6 April the new personal savings allowance means every basic-rate taxpayer can earn £1,000 interest without paying tax on it, equivalent to the interest on almost £75,000 in the top easy-access savings account.
This doesn't just apply to savings accounts, it's for ANY INTEREST from bank accounts, credit unions, building societies or even peer-to-peer lending. And it'll be automatic; from 6 April you'll be paid interest gross (ie, with no tax taken off).
Higher-rate taxpayers get a £500 personal savings allowance, but additional-rate taxpayers don't get any. Here's the lowdown...
http://www.moneysavingexpert.com/saving ... -allowance
Currently for every £100 interest earned, basic-rate taxpayers lose £20 in tax, higher rate £40. Yet from 6 April the new personal savings allowance means every basic-rate taxpayer can earn £1,000 interest without paying tax on it, equivalent to the interest on almost £75,000 in the top easy-access savings account.
This doesn't just apply to savings accounts, it's for ANY INTEREST from bank accounts, credit unions, building societies or even peer-to-peer lending. And it'll be automatic; from 6 April you'll be paid interest gross (ie, with no tax taken off).
Higher-rate taxpayers get a £500 personal savings allowance, but additional-rate taxpayers don't get any. Here's the lowdown...
http://www.moneysavingexpert.com/saving ... -allowance