How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4970
Type Your Tax Question Here...
bigduckontax is online now

I paid 20% tax on my savings and small shares I have do I have

This answer was rated:

I paid 20% tax on my savings and small shares I have do I have to pay tax again when calculating my income?
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 other Tax Specialists are ready to help you
Thank you for your support.