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uk saving interest tax

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hope this is the correct forum.

a personal saving allowance of 1000 pounds a year with no tax is possible now, can anyone tell me if British non residents are included in this or is George Osborn still persecuting non resident British citezens

Are you referring to the personal tax-free allowance of £11,000 for the current tax year (2016-17)? If so, this is, to the best of my knowledge, still available, to all British nationals, regardless of their UK residency status. A proposal to withdraw this allowance from non-residents was mooted a few years ago, but, fortunately, booted into the long grass. However the Government did make worrying murmurings at that time to the effect that it might be revived at some future date, although I have not heard any more on this since.

This is available to all British subjects regardless of where they live. If you have a savings account in the UK, interest will be paid gross with no tax paid at source automatically up to the £1,000 tax free limit them tax will be paid as normal.

Unless you are in the 40% tax bracket then it is 500 pounds.

This is available to all British subjects regardless of where they live. If you have a savings account in the UK, interest will be paid gross with no tax paid at source automatically up to the £1,000 tax free limit them tax will be paid as normal.

This is incorrect.

Non-residents are not subject to tax on dividends or savings interest unless they also have other UK income.

Also tax on interest is no longer withheld at source regardless of the amount. All interest is now paid gross. Forms R85 and R105 no longer exist. There may be some liability to tax on the interest received depending on your circumstances, and this tax (if any) is now collected either via your PAYE tax code or by yearly declaration.

a personal saving allowance of 1000 pounds a year with no tax is possible now, can anyone tell me if British non residents are included in this or is George Osborn still persecuting non resident British citezens

Actually Britain's treatment of non-residents has long been extremely generous when compared with the treatment of expats by many other countries.

  • 2 weeks later...

You can have an income of up to 11,000 in the UK without paying tax and can have a further £6000 savings interest without paying tax. Looking at it another way round you can have an total income of £17000 (pay / pension and savings interest) before you pay any tax on savings.

You can have an income of up to 11,000 in the UK without paying tax and can have a further £6000 savings interest without paying tax. Looking at it another way round you can have an total income of £17000 (pay / pension and savings interest) before you pay any tax on savings.

You can have an income of up to 11,000 in the UK without paying tax and can have a further £6000 savings interest without paying tax. Looking at it another way round you can have an total income of £17000 (pay / pension and savings interest) before you pay any tax on savings.

Interest from cash held in an ISA is tax free, so is in addition to this.

I suspect not but a good point. You can find info re the £17,000 threshold if you punch in tax on savings interest and then search for the UK Government website. Perhaps ISA's will decline with the new rules on savings interest. I doubt that too many people would accumulate more than £1000 per year in interest savings.

You can have an income of up to 11,000 in the UK without paying tax and can have a further £6000 savings interest without paying tax. Looking at it another way round you can have an total income of £17000 (pay / pension and savings interest) before you pay any tax on savings.

Interest from cash held in an ISA is tax free, so is in addition to this.

The OP was clearly asking about UK non-residents, so this is not really relevant, as ISAs are only open to UK-residents.

Also, as kitten kong pointed out, if you are non-resident in the UK and have no other UK-arising income, ALL interest and dividends are tax-free, whatever the amount, as long as you are not claiming your personal allowance.

You can have an income of up to 11,000 in the UK without paying tax and can have a further £6000 savings interest without paying tax. Looking at it another way round you can have an total income of £17000 (pay / pension and savings interest) before you pay any tax on savings.

Interest from cash held in an ISA is tax free, so is in addition to this.

The OP was clearly asking about UK non-residents, so this is not really relevant, as ISAs are only open to UK-residents.

Stuff and nonsense. One is perfectly free to keep one's preexisting ISAs, so it is clearly relevant. It's only opening new ISAs that is out of the question. Many people now have combined ISAs with a total value in excess of GBP 1 million. That could potentially pay GBP 20,000/year or more. The tax saving is very attractive.

Well not to get into an absurd argument, but of course the OP wasn't talking about an existing ISA that he already had, or he would know you are allowed to keep existing ones, and that it was tax free already.

He was asking about newly arising interest obviously, which was also my point.

Well not to get into an absurd argument, but of course the OP wasn't talking about an existing ISA that he already had, or he would know you are allowed to keep existing ones, and that it was tax free already.

He was asking about newly arising interest obviously, which was also my point.

I'm sorry that you can't appreciate that additional issues arise in a discussion. If you'd bothered to read what I wrote carefully you'd have seen I was specifically addressing the statement made by user "rogeroc".

I also think that ISAs should be excluded from discussions about non-residents as you can only get an ISA when you are resident, which I have not been for 40+ years. I'm not sure how easy it would be to move an ISA to another provider when one is non-resident either.

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