Home Home
  • Skip to content
  • Large text
  • Switch back to default page layout
  • Accessibility
  • Contact us
  • Site map
  • Home

Tax careers – your future?
Find out about exciting career opportunities in the world of tax and how to get started.

Tax for student money advisers
How you can help students with tax issues: guidance and training materials for advisers.

  • Tax essentials
  • Working
  • Volunteering and training
  • Tax credits and benefits
  • Tax refunds
  • Types of student
  • Going abroad
  • Other income
  • Student loans

Is there any way of saving tax-free?

Some savings are free from income tax, these are listed below:

Individual Savings Accounts (‘ISA’) income – there is more information about ISAs on our main LITRG website.

National Savings and Investments (‘NS&I’) – interest on Savings Certificates, Children’s Bonds and Children’s Bonus Bonds. Note that Children’s Bonds and Bonus Bonds are no longer available for purchase but any income arising on existing bonds remains tax – free.

Insurance policies or investment bonds – withdrawal tax free up to 5% of the amount originally invested

Save As You Earn schemes – interest and terminal bonuses

Income from certain UK Government stocks or gilts, where the person receiving the money is not resident in the UK

For certain individuals who are not domiciled in the UK, as long as income from overseas is not brought into the UK, it may be treated as tax-free in the UK.

In addition, remember you are entitled to the dividend allowance and to the personal savings allowance.

If you are not resident and/or domiciled in the UK and you have significant savings then we recommend you get professional tax advice.

You may also find the following tips helpful in organising your savings:

Tax Tip 1

If you are married or in a civil partnership, it may be more tax efficient to have a joint bank or building society account. Even if the capital is in unequal shares, HMRC normally tax the income as being received equally by your spouse or civil partner and yourself. Of course, there are other (non-tax) implications to having joint investments.

Tax Tip 2

Beware of interest accounts, for example, bonds, that roll up and credit your interest in one go at the end of the period. These types of account are usually for a fixed length of time that can be more than one year. These could pay a large amount of interest in an individual tax year, pushing your income into the bracket where tax (or more tax) is payable.

Tax Tip 3

Because tax may be due when your dividend income exceeds your dividend allowance and your interest income exceeds your personal savings allowance, you may wish to consider the type of assets that you invest in. Alternatively you could instead invest in tax-free savings products such as National Savings Certificates, Premium Bonds or cash and shares ISAs. These are investment decisions and you should consider your overall position rather than simply your tax position.

Back to the top

Other income

  • My family has given me some money – might I need to pay tax on it?
  • Do I have to pay tax on scholarships and awards?
  • Is there any way of saving tax-free?

Was this page helpful?

  • Follow us on Twittter
  • Follow us on Facebook
  • About this site
  • Contact us
  • Privacy and cookies
  • Legal
  • News
  • Links

© 2019 Low Incomes Tax Reform Group of the Chartered Institute of Taxation. Registered charity number 1037771
Web design by MID