As announced in the Spring 2015 Budget, a new personal savings allowance will be introduced from 6 April 2016.
This will be £1,000 TAX FREE for basic rate taxpayers and £500 a year for higher rate taxpayers, but nil for those with an income over £150,000.
This will provide a further tax planning opportunity for directors with monies owed to them from their company.
Tax will no longer be deducted at source from bank and building society interest. However it is likely that companies will still be required to complete forms CT61.
HMRC are currently reviewing the feedback to their recent consultation on whether changes should also be made to the rules on deduction of tax from other types of savings income such as “peer to peer” loans.
If you have any queries regarding the above or require any further information please do not hesitate to contact us.