Stand-out Q – savings exemption…

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TUE, 06 FEB 2018

Our Technical Hub provides access to a wide range of pension tax and trust technical resources. Every now and then we post tweets covering stand out questions from our technical content and our answers in case others might also find them helpful. As Twitter’s character restrictions only allow for the bare bones of the Q&A we link to the details here, too.

Question:

Will my client be able to take advantage of the £1,000 personal savings allowance?

Answer:

The personal savings allowance has been available since 2016/17 onwards and the limits will be as follows:-

table-for-blog-1-updated

It will apply in addition to the £5,000 0% savings rate. This would mean that basic rate taxpayers whose non-savings income is below £16,850 in 2018/2019 will effectively suffer no income tax on a maximum of up to £6,000 of their gross savings income.

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