2007-10-21 07:39:42 · 7 answers · asked by cuddles 2 in Business & Finance ➔ Taxes ➔ United Kingdom
yes, the interest you receive on the savings in the account are taxed at 20% unless you put them in an ISA or other on taxable savings accounts.
it isnt taxed twice tho as the interest is earnt money on top of the savings amount and therefore its additional earnt income and therefore taxable.
if your a higher rate tax payer, you have to pay another 20%, so thats 40% on your interest.
if your earnings are below the personal allowance ie £5225 for 07/08, then you can opt to have the interest paid gross and no tax will be due. If your total earnings are below the £5225 and you have paid tax on the interest, you can claim it back.
2007-10-21 08:20:42 · answer #1 · answered by Paul S 5 · 1⤊ 1⤋
You aren't taxed on money you've saved that you already paid tax on, but you are taxed on anything that saved money earns.
2007-10-21 14:48:15 · answer #2 · answered by curtisports2 7 · 2⤊ 0⤋
No you don't pay tax on savings. As you say it has been taxed before.
However, you do pay tax on any income derived from those savings.( after all it's income just like your earnings.)
2007-10-22 17:22:48 · answer #3 · answered by Do not trust low score answerers 7 · 0⤊ 0⤋
Taxed as we earn, taxed as we spend, taxed on the income from our savings, taxed on our death.
Stop voting for it!
2007-10-21 14:50:42 · answer #4 · answered by Anonymous · 0⤊ 1⤋
the tax is on the interest
2007-10-21 14:47:16 · answer #5 · answered by Anonymous · 1⤊ 0⤋
Have you looked at ISAs where you can invest up to £3,000 cash interest free?
2007-10-21 14:45:20 · answer #6 · answered by Luke Warnes 4 · 0⤊ 0⤋
"And they say dick Turpin was the bad guy " Englands government is out of touch , its lost its way
2007-10-21 16:06:13 · answer #7 · answered by El Diablo King Of Kings 3 · 0⤊ 0⤋