Tax on savings

MonkeyLove

MonkeyLove

Striker
I’ve never really looked at this before as historically interest rates have been piss poor and it made little difference.

But looking to move a small amount of savings into a new account (Coventry Building Society 5.15% with limited access looks the best at the moment).

How does it work with tax on them? There is a difference between my wife’s and my tax rates. If the account is mine I presume tax is paid at my tax rate and if the account is in her name I presume it’s paid at her rate? What about if it’s in a joint name?

I presume there is nothing dodgy as we are a married couple in terms of who the account holder is?
 


MonkeyLove said:
I’ve never really looked at this before as historically interest rates have been piss poor and it made little difference.

But looking to move a small amount of savings into a new account (Coventry Building Society 5.15% with limited access looks the best at the moment).

How does it work with tax on them? There is a difference between my wife’s and my tax rates. If the account is mine I presume tax is paid at my tax rate and if the account is in her name I presume it’s paid at her rate? What about if it’s in a joint name?

I presume there is nothing dodgy as we are a married couple in terms of who the account holder is?
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Depends how much you earn
www.gov.uk

Tax on savings interest

You do not pay tax on your savings interest if you're on a low income.
www.gov.uk www.gov.uk
 
MonkeyLove said:
Can you pay money into them tax free or is it just the earnings on interest that are tax free?


Cheers mate. It was actually a genuine question rather then a subtle brag
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You can put 20k a year into an ISA, you can have a cash and a stocks ISA, the 20k is split between. It is tax free.
 
MonkeyLove said:
Can you pay money into them tax free or is it just the earnings on interest that are tax free?


Cheers mate. It was actually a genuine question rather then a subtle brag
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You get taxed on your earnings, so on your salary

You then move to a cash/share ISA/premium bonds without paying anymore tax

Any earnings, be it interest or capital gains or pb winnings is tax free

Your limit is 20k for combined isa per year. Or 50k total premium bonds
 
Like inheritance tax sure this "problem" surely only occurs for people who (or whose parents) have shit-loads of wealth?

I write it in italics because it's not really a problem, is it?

I'd be doing cartwheels if I was paying "too much" tax. it's an amazing problem to have to deal with. Once the tax has been paid (to benefit the less well-off in society, via the HMRC system) the individual still has money coming out of their ears.
 

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