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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15940
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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In tax year 2015/2016 my wife may have £18,000 in savings income

Customer Question

In tax year 2015/2016 my wife may have £18,000 in savings income - that is her only income - she is currently a non tax payer - this is a one off - how much tax should she pay please. Thanks Steve
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.

Hi.

Can you tell me what form this savings income will be please, eg bank interest with 20% tax deducted at source, UK dividends, foreign dividends, a life policy gain etc. What was your wife's date of birth?

Customer: replied 2 years ago.
Hi all interest is paid gross and all from banks and building society's DOB 21 .02 .19569
Steve
Expert:  TonyTax replied 2 years ago.
Thanks.

Leave this with me while I draft my answer.
Expert:  TonyTax replied 2 years ago.

Hi again.

Your wife will be entitled to a personal allowance in 2015/16 of £10,600 which will leave £7,400 of her income subject to income tax.

The first £5,000 will be taxed at 0% (£0.00) and the balance of £2,400 will be taxed at 20% (£480.00). The total tax liability will be £480.00. Take a look here for information on tax bands and allowances.

I hope this helps but let me know if you have any further questions.

Customer: replied 2 years ago.
Many thanks that is great - one more question if this amount of £18,000 interest was rolled over to tax year 2016/17 - what tax would be due that year . Many thanks Steve
Expert:  TonyTax replied 2 years ago.
The 2016/17 tax rates and allowances haven't been decided yet. In addition, we are approaching a general election so things could change after that.
Customer: replied 2 years ago.
Thanks - assume you cannot roll up any unused
Personal allowance from previous year ? Thanks you help steve
Expert:  TonyTax replied 2 years ago.
I'm afraid you cannot roll up unused PA.
Customer: replied 2 years ago.
Thanks for your that is perfect Steve
Expert:  TonyTax replied 2 years ago.
Thanks.