Gross & Net Interest Rates Flashcards
1
Q
Describe Gross interest?
Describe Net interest?
A
Gross - the rate paid before the deduction of income tax.
Net - the rate applied after the deduction of income tax.
2
Q
As of what date did interest begin to be paid Gross?
A
6th April 2016
3
Q
What percentage of UK Adults does the government think will now not pay tax on their savings income?
A
95%
4
Q
Can you earn any savings before tax is applied?
A
Yes - you can earn up to your personal savings allowance before the deduction of tax occurs.
5
Q
Describe Basic Rate Personal Savings Allowance (PSA)
A
PSA - £1,000
Previously taxed as 20%
6
Q
Describe Higher Rate Personal Savings Allowance (PSA)
A
PSA - £500
Previously taxed at 40%
7
Q
Describe Additional Rate Personal Savings Allowance (PSA)
A
PSA - NIL
Taxed at 45%
