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geezer466

Tax Question If I May On Savings.

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And a standard rate taxpayer......

We have a sizeable wedge in an e savings account which attracts around £50 a Month (terrible really given what it was getting).

When we signed up for the account I stated we were standard rate taxpayers (me and her indoors) and authorized the bank to tax the interest before paying it over which they do.

The account is a partnership account and there are two holders

Do we have to declare the interest as income on our tax returns? Clearly tax has already been paid on the capital.

Perhaps I should add the funds come directly from my business income, as they accumulate I transfer them from the joint business account to the joint e saver, so clearly the sums as earned (business) income would be declared. Everything is of course above board and is recorded on the bank statements.

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Yes, you are supposed to declare that savings income on your tax return. HMRC should know that you have already paid tax on it at the lower rate and will not further tax it if you do not pay any tax at the 40% rate.

Just like if you have a capital gain below the tax free limit you are still supposed to declare it even though you will not be taxed on it.

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And a standard rate taxpayer......

We have a sizeable wedge in an e savings account which attracts around £50 a Month (terrible really given what it was getting).

When we signed up for the account I stated we were standard rate taxpayers (me and her indoors) and authorized the bank to tax the interest before paying it over which they do.

The account is a partnership account and there are two holders

Do we have to declare the interest as income on our tax returns? Clearly tax has already been paid on the capital.

Perhaps I should add the funds come directly from my business income, as they accumulate I transfer them from the joint business account to the joint e saver, so clearly the sums as earned (business) income would be declared. Everything is of course above board and is recorded on the bank statements.

There is a separate section on the self-assessment tax return for interest that has been taxed (i.e. at 20%). You enter the net amount after tax.

There's another section for any that hasn't been taxed at source.

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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