4. Income From Savings And Investments Flashcards
1
Q
What are the sources for savings income?
A
- Bank interest
- Building society interest
- Interest from national savings and investment account
- Interest from investments in gilts
- Interest from a loan stock from companies
2
Q
What needs to be considered when calculating saving income?
A
- Bandings for tax
- Starting rate
- Savings allowance
3
Q
What is the starting rate for savings income?
A
The first £5,000 of savings income is taxed at 0% if taxable income below £5,000.
4
Q
What are the savings allowance rates?
A
BRB - £1,000
HRB - £500
ARB - £0
5
Q
What are the dividend income tax bands?
A
BRB £1 - £37,500 7.5%
HRB £37,501 - £150,000. 32.5%
ARB £150,001 +. 38.1%
6
Q
What is the dividend allowance?
A
£2,000 taxed at 0% for all, no matter what level of income.
7
Q
What are the tax free investments and income?
A
- NSI certificates
- Individuals savings account (ISA’s)
- Statutory redundancy money
- Winnings and prizes
- Scholarships / educational grants
- Child / social benefits
- Interest on damages for personal injury
- Local authority grant
- Interest on income tax repayments
- Interest on SAYE
