Taxation Of Interest Flashcards
(4 cards)
1
Q
Taxable interest includes
A
Bank and building society accounts
National Savings and Investments (NS&I) accounts
Gilts (government stocks)
2
Q
When is interest taxed and at what rates
A
Taxed after non-savings income
0%
20%
40%
45%
3
Q
Savings allowance & rates
A
No higher rate income - 1000
Higher rate income but no additional rate - 500
Additional rate income - Nil
4
Q
Starting rate band
A
If non-savings income is under 5k interest is charged at 0% upto 5k
Interest in the starting band does not utilise the savings allowance and can apply in addition to.
