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
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2
Q

What needs to be considered when calculating saving income?

A
  • Bandings for tax
  • Starting rate
  • Savings allowance
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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.

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4
Q

What are the savings allowance rates?

A

BRB - £1,000
HRB - £500
ARB - £0

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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%

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6
Q

What is the dividend allowance?

A

£2,000 taxed at 0% for all, no matter what level of income.

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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
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