On 15 July HMRC issued a consultation document on the deduction of income tax from savings income.
The context here is the new personal savings allowance (PSA) which from April 2016 will give individual basic rate taxpayers £1 000 of savings income free of tax. Also from April 2016 the tax deduction scheme for interest (TDSI) will cease so that banks and building societies will no longer have to deduct tax from interest on the deposits of individuals partnerships or trusts.
This leaves the question of what to do with withholding on interest not within TDSI (or non-TDSI interest). This applies most obviously to payments of yearly interest...
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On 15 July HMRC issued a consultation document on the deduction of income tax from savings income.
The context here is the new personal savings allowance (PSA) which from April 2016 will give individual basic rate taxpayers £1 000 of savings income free of tax. Also from April 2016 the tax deduction scheme for interest (TDSI) will cease so that banks and building societies will no longer have to deduct tax from interest on the deposits of individuals partnerships or trusts.
This leaves the question of what to do with withholding on interest not within TDSI (or non-TDSI interest). This applies most obviously to payments of yearly interest...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
a consultation document on the deduction of income tax from savings income. 
