Tax on savings

AndrewP said:
They won't let that happen.
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The SP is not taxable (at the moment) but it is counted as income and is added to my private pension income so obviously already pay tax on that, if I was to get £200 a year "extra" on the state pension I would pay tax on the same "extra" amount on the private pension. I would obviously be much better off if the personal allowance was increased, I won't hold my breath.
 


Jonjo0789 said:
The SP is not taxable (at the moment) but it is counted as income and is added to my private pension income so obviously already pay tax on that, if I was to get £200 a year "extra" on the state pension I would pay tax on the same "extra" amount on the private pension. I would obviously be much better off if the personal allowance was increased, I won't hold my breath.
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I thought the state pension was taxable already, but obviously less than the allowance, currently.

If not, I see what you mean.
 
AndrewP said:
They won't let that happen.
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The state pension has to remain below the tax threshold or the threshold has to increase, something will ultimately change. Or is the state pension tax exempt ? ie if it went up to 15k tomorrow would that 15k be exempt from tax no matter, sure it is all part of your taxable income. I never thought students would need to pay to go to uni but that happened. No different to that lady who has a part time job to get a few luxuries to top her state pension up, she is taxed. Only other option would be for pensioners to have a SP tax threshold, sure the wise smb will keep me right. I would make the tax threshold 15k for working state pensioners for those who want a bit pocket money in a part time job as per the lady mentioned. Gov always going on about lack of workers in certain sectors but do little to encourage anybody.
 
mackem35 said:
The state pension has to remain below the tax threshold or the threshold has to increase, something will ultimately change. Or is the state pension tax exempt ? ie if it went up to 15k tomorrow would that 15k be exempt from tax no matter, sure it is all part of your taxable income. I never thought students would need to pay to go to uni but that happened. No different to that lady who has a part time job to get a few luxuries to top her state pension up, she is taxed. Only other option would be for pensioners to have a SP tax threshold, sure the wise smb will keep me right. I would make the tax threshold 15k for working state pensioners for those who want a bit pocket money in a part time job as per the lady mentioned. Gov always going on about lack of workers in certain sectors but do little to encourage anybody.
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They'll just increase the personal allowance to match the state pension.
 
Billericay Dichio said:
They have to. Why pay a state pension at a level where you have to pay income tax on it? The cost of administration would just be dead money.
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Talking uk gov here - when has common sense ever stopped them. Sure the tories said the tax allowance frozen until 2028, the state pension will be above the threshold by then.
 
mackem35 said:
The state pension has to remain below the tax threshold or the threshold has to increase, something will ultimately change. Or is the state pension tax exempt ?
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Until 2014/5-ish there was a higher personal allowance for those of pension age but it was scrapped to make the tax system "simpler".
 
General Isa question here.
If you have an ISA where you have to pay an interest penalty if you withdraw all or part before the maturity date does the penalty still apply if you did a full balance ISA transfer to another bank before the maturity date ?
 
STUMPY said:
General Isa question here.
If you have an ISA where you have to pay an interest penalty if you withdraw all or part before the maturity date does the penalty still apply if you did a full balance ISA transfer to another bank before the maturity date ?
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Generally no but I would double check the T&Cs. You should get the interest pad on a daily pro-rata basis.
 
Darlo1973 said:
Generally no but I would double check the T&Cs. You should get the interest pad on a daily pro-rata basis.
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Matt Hopkins said:
They have done on mine when I've looked into it before but as you say @STUMPY check the T&C's 👍
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I've looked at the T&Cs on both, one has a 60 day interest penalty on the amount withdrawn the other a 90 day, but neither make it clear whether this includes moving the full balance to another provider before the maturity date. They both just say any withdrawal is subject to those penalties.
May have to pick the phone up to get clarification.
 
STUMPY said:
I've looked at the T&Cs on both, one has a 60 day interest penalty on the amount withdrawn the other a 90 day, but neither make it clear whether this includes moving the full balance to another provider before the maturity date. They both just say any withdrawal is subject to those penalties.
May have to pick the phone up to get clarification.
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Even if that's true then it may be worth paying the 60 or 90 day penalty if the account you are moving it to has a sufficiently high interest rate which will offset the loss of interest.
 
Darlo1973 said:
Even if that's true then it may be worth paying the 60 or 90 day penalty if the account you are moving it to has a sufficiently high interest rate which will offset the loss of interest.
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That's the trouble, I don't think it's worth it if I have to pay an interest penalty, I've one that's giving 4.25& matures in October but has a 90 day penalty the other is giving 4.00% matures April 2025 and has a 60 day penalty. If I move them what's the best out there at the minute ? Probably around 5% ?
 
STUMPY said:
General Isa question here.
If you have an ISA where you have to pay an interest penalty if you withdraw all or part before the maturity date does the penalty still apply if you did a full balance ISA transfer to another bank before the maturity date ?
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I'd say yes, as you're still withdrawing it
 

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