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Where Taxpayers and Advisers Meet

Interest allowance

Dino
Posts: 5
Joined: Fri Apr 19, 2019 6:54 am

Interest allowance

Postby Dino » Fri Apr 19, 2019 7:30 am

According to HMRC [1] my allowance for interests is £500.
In the previous years I got less than that as gross interests.

Filling the SA, in the Untaxed UK interest field, shall I input all the interests or just those over the allowance?

1: https://www.gov.uk/apply-tax-free-interest-on-savings
Living in the UK for few years: continuously learning life in the UK.
Sometime I feel like an orphan looking for help to understand this new life

darthblingbling
Posts: 214
Joined: Wed Aug 02, 2017 9:09 pm

Re: Interest allowance

Postby darthblingbling » Fri Apr 19, 2019 3:09 pm

All. It's not tax free, it's just taxed at zero percent but still count towards your gross income

D&C
Posts: 61
Joined: Thu Dec 22, 2016 10:04 pm

Re: Interest allowance

Postby D&C » Fri Apr 19, 2019 5:10 pm

There is no "allowance" for interest.

You have to declare all of your taxable interest.

If you don't have any spare Personal Allowance then it will be taxed.

Quite possibly at one of the two different 0% rates (savings starter and savings nil rate).

As you refer to £500 you are presumably a higher rate payer and although some of the interest may be taxed at 0% it can still increase your overall Self Assessment liability, for example you might have more High Income Child Benefit Charge to pay or you could lose some of your Personal Allowance if the interest (even the bit taxed at 0%) takes you into the £100k+ range of adjusted net income.

Dino
Posts: 5
Joined: Fri Apr 19, 2019 6:54 am

Re: Interest allowance

Postby Dino » Fri Apr 19, 2019 8:29 pm

Thank you ;)
Living in the UK for few years: continuously learning life in the UK.
Sometime I feel like an orphan looking for help to understand this new life

JayWalton
Posts: 1
Joined: Sun Apr 07, 2019 3:11 am

Re: Interest allowance

Postby JayWalton » Tue Apr 23, 2019 2:50 am

Thanks D&C!! I have been looking for this as well.


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