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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4193
Experience:  FCCA FCMA CGMA ACIS
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I paid 20% tax on my savings and small shares I have do I have

Customer Question

I paid 20% tax on my savings and small shares I have do I have to pay tax again when calculating my income?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
This type of income is taxable under the UK Income tax regime. Deposit takers will deduct the tax at the basic rate and dividends will bear a notional tax deduction of 10%.
If your total income is below your Personal Allowance (10.6K this tax year, 10K last) then you can have the deposit taker pay your interest gross by sending them an HMRC form R85. If you are recovering over paid tax from earlier years you will have to apply to your tax office for a form R40 for this purpose. The notional tax on the shares, however, cannot be recovered.
If your income is over the personal allowance level then tour tax liability on these sources on income will have been settled unless, of course, you go into the higher tax brackets.
I do hope that I have interpreted your question correctly and shown you a way forward.
bigduckontax and 2 other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.