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Question on new 10p saving rate of tax posted about 2 hours ago?


the new tax year done away with the 10p rate of tax.But the tax man set up a new rate of tax for savings for the very first time.Allowance is 10p for the first 拢2232.00 after that it is 20p in the pound.Not all people will get this .If anyone knows about this new tax rate I wanted to know if I would get it as my personal allowance is under the rate for paying tax thank you Scotty

This is not a new tax rule - it is just a continuation of the old rule which used to run in parallel to the 10% income tax band.

If you earn less than your personal allowance in its entirety, then you could be eligible to pay no tax on your savings - complete form R85

If you earn over your personal allowance, but less than 拢2320 above it, then some of your earnings will be eligible for the 10% rate. However, your bank will still deduct 20% - you must claim the 10% difference back from HMRC - complete form R40

Thank you for bringing this to our attention. Have looked at www.hmrc.uk/tax rates, and it appears to be only applicable to people who have interest, and their other income doesn't take them into the tax bracket of 20%.
I don't think it would make any difference to you if you are not liable to tax. It means your interest would have to be enough to put you liable to tax, and then you would have to pay 10% on the amount over your personal allowance provided you didn't go over by 拢2232. For example, if your personal allowance was the normal for people under 65, 拢5435, you could have income and interest up to 拢7667, when you would pay 10%. If you went over this, you would pay 20% on all of it over your allowance.
If you are having 20% deducted from bank/building society interest, and your total income doesn't exceed yout tax allowance, you can get form R85 from bank to have interest paid gross. I don't know if any other forms are being brought in to allow for the 10% at source. Ask at bank.

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