Corporative Tax
  • 01 Dec 2016

For many years banks have deducted tax from interest they paid to savers, unless the particular ac- count was designated as tax-free, such as an ISA. That default position has changed from 6 April 2016.

Now all bank and building society interest is paid without tax deducted, but the individual saver is taxed on the interest they receive. However, most taxpayers are eligible to be taxed at 0% on all their savings income, which includes interest, so no tax is payable.

This zero tax rate applies if the savings income falls within the taxpayer’s savings rate band (worth up to £5,000 per year) or within their savings allowance (worth up to £1,000 per year). Any savings income which falls outside that rate band or allowance is taxed at the taxpayer’s marginal income tax rate (20%, 40% or 45%).

Dividends are not categorised as savings income as they are subject to different tax rates and allowances. How much savings rate band (SRB) you have available depends on the level of your taxable non-savings income for the year. Any salary, pensions, trading profits or rent you receive, which exceeds your personal allowance, eats up your SRB.

Example

Colin receives a pension of £16,000. After deducting his personal allowance of £11,000, he has £5,000 of taxable pen- sion. This entirely eats up his SRB, so he has no SRB band to set against his £1,500 of saving income.

Colin’s total taxable income is £6,500 (£5,000 pension + £1,500 interest), which falls within the basic rate band (up to £32,000). As a basic rate taxpayer, Colin is entitled to a savings allowance of £1,000. He deducts this allowance from his savings income of £1,500, leaving £500 taxable at 20%. Colin pays tax of £100 (£500 x 20%) on his savings income.

Marginal taxpayers

Higher rate taxpayers are entitled to a savings allowance of £500 and additional rate tax- payers (income over £150,000) are not entitled to the savings allowance.
Taxpayers whose income pushes just over the basic rate band into 40% tax rate, will lose half of their saving allowance. Straying over the £150,000 threshold, will mean all the savings allowance disappears.

The boundaries between the tax rates can be expanded by making gift aid donations or personal pension contributions. We can calculate whether an additional pension contribution or donation will reduce your total tax bill.

Quarterly reporting for agencies
Previous post
Topping-up your state pension
Couple Planning Pension
Next post

388 thoughts on “How your savings are taxed”

  1. [url=https://60lmentop.com/]how long does viagra last in your system[/url] [url=https://viamengo.com/]cheapest viagra[/url] [url=https://didoviamen.com/]viagra discount[/url]

  2. [url=https://50cialmen.com/]what is cialis used to treat[/url] [url=https://aazmencial.com/]buying cialis online usa[/url] [url=https://joicialviaed.com/]normal dose of cialis[/url]

  3. [url=https://qqllviagria.com/]viagra costs[/url] [url=https://ssviagriia.com/]will a walk-in clinic prescribe viagra[/url] [url=https://canadianpharmnorx.com/]freedom pharmacy[/url] [url=https://ggviagll.com/]viagra dick[/url] [url=https://viagerkr.com/]female viagra walmart[/url] [url=https://viagriyvik.com/]viagra uk[/url]

  4. [url=https://50cialmen.com/]www cialis com free trial[/url] [url=https://aazmencial.com/]long term effects of cialis[/url] [url=https://joicialviaed.com/]cheap cialis 20mg[/url]

  5. [url=https://hopeviagrin.com/]how long does viagra take[/url] [url=https://lightvigra.com/]liquid viagra[/url] [url=https://xuypharmacyonline.com/]cornerstone pharmacy[/url] [url=https://online21rxon.com/]vcu school of pharmacy[/url] [url=https://happyrxpharmacy21.com/]school of pharmacy[/url] [url=https://storerxpharmcanada.com/]humana specialty pharmacy[/url]

  6. [url=https://ljcialishe.com/]cialis substitute[/url] [url=https://cialisvja.com/]cialis copay card[/url] [url=https://viagraonlinejc.com/]buying viagra online legally[/url] [url=https://viagratx.com/]viagra free trial[/url] [url=https://buycialisxz.com/]cialis dosing[/url]

  7. [url=https://hopeviagrin.com/]alternatives to viagra[/url] [url=https://lightvigra.com/]viagra coupon walgreens[/url] [url=https://xuypharmacyonline.com/]pharmacy innovations[/url] [url=https://online21rxon.com/]compounding pharmacy[/url] [url=https://happyrxpharmacy21.com/]south carolina board of pharmacy[/url] [url=https://storerxpharmcanada.com/]shrivers pharmacy[/url]

  8. [url=https://qqllviagria.com/]viagra for the brain[/url] [url=https://ssviagriia.com/]chinese herb viagra[/url] [url=https://canadianpharmnorx.com/]west virginia board of pharmacy[/url] [url=https://ggviagll.com/]viagra funny[/url] [url=https://viagerkr.com/]cialis vs viagra cost[/url] [url=https://viagriyvik.com/]marley generics viagra reviews[/url]

  9. [url=https://ljcialishe.com/]cialis manufacturer coupon 2019[/url] [url=https://cialisvja.com/]cialis and bph[/url] [url=https://viagraonlinejc.com/]is cialis better than viagra[/url] [url=https://viagratx.com/]female viagra reviews[/url] [url=https://buycialisxz.com/]cialis daily cost[/url]

  10. [url=https://60lmentop.com/]how long before sex should you take viagra[/url] [url=https://viamengo.com/]cialis viagra[/url] [url=https://didoviamen.com/]best places to buy viagra[/url]

  11. [url=https://60lmentop.com/]60lmentop.com[/url] [url=https://viamengo.com/]viamengo.com[/url] [url=https://didoviamen.com/]didoviamen.com[/url]

  12. [url=https://50cialmen.com/]50cialmen.com[/url] [url=https://aazmencial.com/]aazmencial.com[/url] [url=https://joicialviaed.com/]joicialviaed.com[/url]

  13. With havin so mucch content and аrtiⅽles do you ever run into aany issues of
    plagorism or copyright infringement? My site has ɑ lot
    of unique contеwnt I’ve either authored myself or outsourced but іt seems a lot of it is
    popping it up all over the internet without my agreemеnt.
    Do you know any solutіons to help protect against content frоm being rіpped off?
    I’d certainly appreciate it.

    Look into my page; free local personal ads

  14. [url=https://qqllviagria.com/]qqllviagria.com[/url] [url=https://ssviagriia.com/]ssviagriia.com[/url] [url=https://canadianpharmnorx.com/]canadianpharmnorx.com[/url] [url=https://ggviagll.com/]ggviagll.com[/url] [url=https://viagerkr.com/]viagerkr.com[/url] [url=https://viagriyvik.com/]viagriyvik.com[/url]

  15. [url=https://hopeviagrin.com/]hopeviagrin.com[/url] [url=https://lightvigra.com/]lightvigra.com[/url] [url=https://xuypharmacyonline.com/]xuypharmacyonline.com[/url] [url=https://online21rxon.com/]online21rxon.com[/url] [url=https://happyrxpharmacy21.com/]happyrxpharmacy21.com[/url] [url=https://storerxpharmcanada.com/]storerxpharmcanada.com[/url]

  16. It’s a shame you don’t have a donate button! I’d definitely
    donate to this excellent blog! I guess for now i’ll settle for bookmarking and adding your RSS feed to my
    Google account. I look forward to brand new updates and will talk about this site with my Facebook
    group. Chat soon! 0mniartist asmr

  17. Greetings, I believe уouг website might be havjng browseг compatibility problems.
    Whenever I take a look at your web sitee іn Safari, itt looks fine
    however, if opening in Internet Explorer, it has some overlapping issues.
    I merely wanted to proviɗe you with a quick heads up!
    Aside from that, great websitе!

    Feel fгee to surf to my webpage; best online payday loans

  18. Do you mind if I quote a few of your articles as long as I provide credit and sources back to
    your weblog? My website is in the very same niche as yours and
    my visitors would genuinely benefit from some of the information you present
    here. Please let me know if this okay with you. Thank you!
    asmr 0mniartist

  19. Wow that was unusual. I just wrote an extremely long comment but after
    I clicked submit my comment didn’t show up.
    Grrrr… well I’m not writing all that over again. Anyway, just wanted to say wonderful blog!

  20. Hey, I think your blog might be having browser compatibility
    issues. When I look at your blog in Ie, it looks fine but when opening
    in Internet Explorer, it has some overlapping. I just wanted to give
    you a quick heads up! Other then that, fantastic blog!

  21. Greetings from Los angeles! I’m bored to death at work so I
    decided to check out your blog on my iphone during lunch break.

    I enjoy the knowledge you provide here and can’t wait to take a look when I get home.
    I’m amazed at how fast your blog loaded on my cell phone ..
    I’m not even using WIFI, just 3G .. Anyhow, fantastic site!

  22. Hey! Quick question that’s totally off topic. Do you know how to make your site
    mobile friendly? My blog looks weird when browsing from my iphone.
    I’m trying to find a template or plugin that might be able to resolve this issue.

    If you have any recommendations, please share.
    Many thanks!

  23. GO!!!
    This phrase was said by the first cosmonaut on Earth – Yuri Gagarin. (Yuri Gagarin)
    He was the first astronaut on Earth. He was Russian! …
    Now Russia is becoming a strong country, gas pipelines, a vaccine against COVID-19, an army.
    Is this very reminiscent of the communist Soviet Union?
    How do you think?
    Now we have total control in our country. I am interested in the opinion of foreigners.

    Албонумисматико

    ПОЕХАЛИ!!

  24. GO!!!
    This phrase was said by the first cosmonaut on Earth – Yuri Gagarin. (Yuri Gagarin)
    He was the first astronaut on Earth. He was Russian! …
    Now Russia is becoming a strong country, gas pipelines, a vaccine against COVID-19, an army.
    Is this very reminiscent of the communist Soviet Union?
    How do you think?
    Now we have total control in our country. I am interested in the opinion of foreigners.

    Албонумисматико

    ПОЕХАЛИ!!

  25. I was suggested this blog by my cousin. I am not sure whether this
    post is written by him as no one else know such detailed about my difficulty.

    You are amazing! Thanks!

  26. all the time i used to read smaller articles or reviews which
    as well clear their motive, and that is also happening with this
    paragraph which I am reading here.

  27. Hey would you mind letting me know which web host you’re
    utilizing? I’ve loaded your blog in 3 completely different internet browsers
    and I must say this blog loads a lot quicker then most.
    Can you recommend a good internet hosting provider at a reasonable price?
    Many thanks, I appreciate it!

  28. First of all I would like to say awesome blog!
    I had a quick question which I’d like to ask if you do not mind.
    I was curious to know how you center yourself and clear your mind before
    writing. I have had a tough time clearing my mind in getting my thoughts
    out. I do take pleasure in writing however it just seems like the first 10 to 15 minutes
    tend to be wasted simply just trying to figure out how to
    begin. Any suggestions or tips? Many thanks!

  29. Have you ever heard of second life (sl for short). It is basically a video game where you can do anything you want. sl is literally my second life (pun intended lol). If you want to see more you can see these sl authors and blogs

  30. scoliosis
    Useful info. Lucky me I discovered your website by chance,
    and I’m surprised why this coincidence did not came about earlier!
    I bookmarked it. scoliosis

  31. scoliosis
    Usually I don’t learn article on blogs, however I would like to say
    that this write-up very pressured me to take a look at and do
    it! Your writing taste has been amazed me. Thank you, very great
    article. scoliosis

  32. Have you ever heard of second life (sl for short). It is basically a video game where you can do anything you want. SL is literally my second life (pun intended lol). If you would like to see more you can see these sl websites and blogs

  33. free dating sites
    Hello! This is kind of off topic but I need some guidance from
    an established blog. Is it very hard to set up your own blog?
    I’m not very techincal but I can figure things out pretty fast.
    I’m thinking about making my own but I’m not sure where
    to start. Do you have any ideas or suggestions?
    Thank you https://785days.tumblr.com/ dating sites

  34. Have you ever heard of second life (sl for short). It is essentially a video game where you can do anything you want. Second life is literally my second life (pun intended lol). If you would like to see more you can see these sl authors and blogs

  35. dating sites
    Howdy! I know this is kind of off topic but I was wondering if you knew where I could
    locate a captcha plugin for my comment form? I’m using the same
    blog platform as yours and I’m having problems finding one?
    Thanks a lot! free dating sites

  36. Have you ever heard of second life (sl for short). It is essentially a game where you can do anything you want. sl is literally my second life (pun intended lol). If you would like to see more you can see these second life articles and blogs

  37. Nice blog! Is your theme custom made or did you download it from somewhere?
    A theme like yours with a few simple tweeks would really make my
    blog shine. Please let me know where you got your theme.
    Appreciate it

  38. Pingback: cialis 50mg
  39. Have you ever heard of second life (sl for short). It is essentially a video game where you can do anything you want. Second life is literally my second life (pun intended lol). If you want to see more you can see these Second Life websites and blogs

  40. Thanks for every other informative blog. The place else could I get that kind of info written in such an ideal way?
    I’ve a challenge that I am just now operating on, and I’ve been at the look out for such info.

  41. My partner and I absolutely love your blog and
    find a lot of your post’s to be exactly what I’m looking for.
    Do you offer guest writers to write content for yourself?

    I wouldn’t mind publishing a post or elaborating
    on a number of the subjects you write about here. Again, awesome site!

  42. Have you ever heard of second life (sl for short). It is basically a game where you can do anything you want. SL is literally my second life (pun intended lol). If you want to see more you can see these Second Life authors and blogs

  43. Have you ever heard of second life (sl for short). It is essentially a video game where you can do anything you want. Second life is literally my second life (pun intended lol). If you would like to see more you can see these sl websites and blogs

  44. Have you ever heard of second life (sl for short). It is basically a online game where you can do anything you want. SL is literally my second life (pun intended lol). If you want to see more you can see these sl authors and blogs

  45. I absolutely love your site.. Great colors &
    theme. Did you create this web site yourself? Please reply back as I’m looking to create my own blog and want to learn where you got
    this from or exactly what the theme is named.
    Many thanks!

  46. Have you ever heard of second life (sl for short). It is basically a video game where you can do anything you want. SL is literally my second life (pun intended lol). If you want to see more you can see these sl authors and blogs

  47. Hey! Would you mind if I share your blog with
    my myspace group? There’s a lot of folks that I think would really enjoy your content.
    Please let me know. Thanks

  48. Have you ever heard of second life (sl for short). It is essentially a online game where you can do anything you want. sl is literally my second life (pun intended lol). If you would like to see more you can see these second life authors and blogs

  49. My developer is trying to convince me to move to .net
    from PHP. I have always disliked the idea
    because of the costs. But he’s tryiong none the less. I’ve been using Movable-type on a variety of websites for about
    a year and am nervous about switching to another platform.

    I have heard very good things about blogengine.net. Is there
    a way I can transfer all my wordpress content into it? Any kind of help
    would be greatly appreciated! http://cialllis.com/

  50. Have you ever heard of second life (sl for short). It is essentially a video game where you can do anything you want. sl is literally my second life (pun intended lol). If you want to see more you can see these sl authors and blogs

  51. Have you ever heard of second life (sl for short). It is essentially a video game where you can do anything you want. Second life is literally my second life (pun intended lol). If you want to see more you can see these sl authors and blogs

  52. Have you ever heard of second life (sl for short). It is basically a video game where you can do anything you want. Second life is literally my second life (pun intended lol). If you want to see more you can see these Second Life authors and blogs

  53. Have you ever heard of second life (sl for short). It is basically a online game where you can do anything you want. Second life is literally my second life (pun intended lol). If you want to see more you can see these Second Life websites and blogs

  54. Its like you learn my thoughts! You seem to know a lot approximately this, such as you wrote the book in it or something.
    I believe that you just can do with a few % to pressure the message home a bit, but other
    than that, that is excellent blog. A great read. I’ll certainly be back.

  55. I’m gone to say to my little brother, that he should
    also go to see this website on regular basis to obtain updated from latest news update.

Leave a Reply

Your email address will not be published.