Savings tax is payable on any income you receive from savings, such as interest paid on a bank account.
Typically, savings interest is paid net of 20% tax and if you are a higher or additional state taxpayer, then you will have to pay the difference in your self assessment. If you are a basic or starting rate taxpayer, then you can reclaim the difference. If you are a non-taxpayer, then you should submit an R85 form to your account provider so they can pay your interest gross.
The key to Savings Tax planning is to invest the savings using the relevant tax wrappers, such as tax-efficient vehicles like ISA’s and pensions.
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Bankfield’s Independent Financial Advisers specialise in Tax planning and have up to date qualifications to ensure that you receive the very best professional advice.
Tax treatment is based on individual circumstances and may be subject to change in the future. Taxation planning is not regulated by the Financial Conduct Authority. The value of investments and income from them may go down. You may not get back the original amount invested.