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Your Questions Answered
Below are the
3 database entries on the subject of
Investments.
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| Why does my tax return ask for details of my bank interest as I pay tax on the interest already? : | ||
| Interest paid on bank accounts is taxed at 20% before it is credited to your account. However,if you pay tax at 40% you will be liable to pay an additional 20% on the gross interest received. | ||
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| My income is really low, and I do not pay tax. It seems unfair that I have to pay tax on my bank interest just to claim it back at the end of the year. : | ||
| You can register for the tax to be paid "gross", that is without tax being deducted. Just ask your bank or building society for form R85. | ||
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| I pay tax at the highest rate. What extra tax do I have to pay on my share dividends? : | ||
| If you pay tax at the higher rate you will be liable to tax at 32.5% on the gross dividend. However, each dividend carries a 10% notional tax credit which will be offset against the additional liability. | ||
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