The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
Savings income includes interest, profits from deeply discounted securities, accrued income profits and chargeable event gains.
Savings income is taxed after non-savings income but before dividend income. There are four possible rates oftax applying to savings income from 2015/16 onwards: 0%; 20%; 40%; or 45%.
Note that the Scottish and Welsh income tax rates only apply to the non-savings non-dividend income (commonly referred to in practice as non-savings income) ofScottish or Welsh taxpayers. As far as the savings income ofScottish and Welsh taxpayers is concerned, it is the UK tax bands and rates that apply. For the definition ofScottish and Welsh taxpayers, see the Proforma income tax calculation guidance note.
Whether savings income is taxable in the UK depends on the circumstances ofthe individual and whether the income is paid by a UK resident or non-resident payer.
An individual who is resident and domiciled or deemed domiciled in the UK is taxable on his worldwide income (and gains) in the tax year in which these are received and should declare these on his tax return. See the Residence ― overview and Domicile guidance notes for detail on these terms.
Individuals who are not domiciled or deemed domiciled in the UK are eligible to access the remittance basis ofassessment. The effect ofthe remittance basis is that the individual is only taxable on his foreign income to the extent that these are remitted (brought) to the UK. The remittance basis only affects the taxation offoreign income; UK income (such as interest paid by a UK bank) remains taxable in the UK in the year it is received. The remittance basis is discussed further in the Remittance basis ― overview and When are income and gains remitted? guidance notes.
If an individual who is eligible to access the remittance basis chooses not to do so, he is taxable on his worldwide income in the year it is received. This means he
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Income and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax 2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting the foreign tax
The rent-a-room scheme was introduced in the early 1990s to encourage homeowners to take in lodgers.Fundamentally, the rent-a-room scheme is a relief which means that the rent received by an individual from a lodger (up to a prescribed limit) can be exempt from income tax. If the gross rents are
This guidance note provides an overview of the steps businesses need to take if aspects of their business change, and as a result, they need to notify HMRC about the change.Changes to name and / or addressIf a business changes its name and / or its address then it is required to notify HMRC of the
Business asset disposal relief (previously known as entrepreneurs’ relief) is a capital gains tax (CGT) relief that allows business owners with chargeable gains on qualifying business assets to pay CGT at a rate of 10%. For disposals made on or after 11 March 2020, the relief is available on up to
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.