Tax-free savings boost

March 6th, 2015  |  Published in Uncategorized

The Government announced at Budget 2014 that it would abolish the 10% starting rate of tax for savings, replacing it with a new 0% rate. It is also increasing the amount of savings this starting rate applies to, from £2,880 to £5,000.

From 6 April, one million savers with an annual income under £15,600 will be able to get their savings interest paid completely tax-free.

Savers can check if they can benefit by using the new online calculator http://www.hmrc.gov.uk/tools/r85/r85-2015.htm

There’s more information on tax-free savings on the government website https://www.gov.uk/taxfreesavings

If eligible for tax-free savings, savers will need to register their account with their bank or building society. If eligible to reclaim tax they have paid on interest, savers should complete form R40 or include the figure on their tax return.

From April, savers will also benefit from an increase in the ISA limit to £15,240

 

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