Post by bracknellboy on May 1, 2023 7:07:58 GMT
OK, after doing a fair amount of digging, I'm still unsure on this.
I fully get the rules on the Starting Rate for savings, including the tapering when other income is > income tax personal allowance. However, what I cannot fathom is whether the Personal Savings allowance of £1k is in addition to the Starting Rate (assuming you are eligible for the latter) or only kicks in when you are not eligible for any element of Starting Rate relief.
Wording I've seen on the HMRC guidance implies that it is in addition. In other words, assuming other income is less than the IT personal allowance, the savings allowance is in effect £6k (£5k + 1k), and if it is above, but below the £17,570 number (where tapering reduces the 'Starting Rate' to zero) then you get £<portion of starting rate> + £1k.
I'm pretty sure that the English says this, but it has been made sufficiently convoluted that I'm not sure I trust the wording.
I fully get the rules on the Starting Rate for savings, including the tapering when other income is > income tax personal allowance. However, what I cannot fathom is whether the Personal Savings allowance of £1k is in addition to the Starting Rate (assuming you are eligible for the latter) or only kicks in when you are not eligible for any element of Starting Rate relief.
Wording I've seen on the HMRC guidance implies that it is in addition. In other words, assuming other income is less than the IT personal allowance, the savings allowance is in effect £6k (£5k + 1k), and if it is above, but below the £17,570 number (where tapering reduces the 'Starting Rate' to zero) then you get £<portion of starting rate> + £1k.
I'm pretty sure that the English says this, but it has been made sufficiently convoluted that I'm not sure I trust the wording.
