savings allowance Archives - WRLO Accountants https://www.wrloaccountants.co.uk/tag/savings-allowance/ Chartered Accountants & Business Advisors Tue, 26 Sep 2023 12:29:57 +0000 en-GB hourly 1 https://wordpress.org/?v=7.0 https://www.wrloaccountants.co.uk/wp-content/uploads/2018/01/cropped-WRLO-logo-big-32x32.jpg savings allowance Archives - WRLO Accountants https://www.wrloaccountants.co.uk/tag/savings-allowance/ 32 32 Another million savers to be hit with tax on interest https://www.wrloaccountants.co.uk/another-million-savers-to-be-hit-with-tax-on-interest/ Thu, 07 Sep 2023 14:09:41 +0000 https://www.wrloaccountants.co.uk/?p=3856 The frozen Savings Allowance combined with rising interest rates will push over one million taxpayers into paying tax on their savings this tax year, according to research by investment platform AJ Bell. In the 2023/24 tax year it is estimated that over 2.7 million individuals will pay tax on interest, up by a million in a year. This year’s predicted total includes nearly 1.4 million basic rate taxpayers, a figure which has quadrupled in just four years, AJ Bell’s research found. Individuals pay tax on interest they earn on savings that exceeds the personal Savings Allowance, which currently stands at £1,000 for basic rate taxpayers and £500 for higher rate taxpayers. Additional rate taxpayers get no exemption and pay tax on all interest they receive. Laura Suter, Head of Personal Finance at AJ Bell, said: ‘These figures highlight just how many taxpayers are facing a tax bill for their savings interest this year – a huge leap when compared to last year. The combination of higher interest rates and people having shunned ISA accounts in recent years means that the number paying tax on their savings has more than tripled in the past four years. ‘Rising rates and a frozen personal […]

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