Savings

[1944screen]

I am soon to be left some money which will take my savings over the gov allowance. Will this affect the tax I already pay on my pensions ?

[New Judge]

What government allowance? There is no limit on the amount you can save. There is an allowance of £1,000 (provided you are a standard rate taxpayer) which you can earn in interest before tax is payable. Is that what you mean? That allowance can be increased if your other income is particularly low.

[youngmafbog]

Or do you mean savings before benefits are affected?

[1944screen]

I seem to be mixing it up with the £12,500 you can earn before tax. What you are saying is that savings don't affect this. Is that correct?

[1944screen]

Just seen youngamfbog's answerand I think this it what I mean

[fiction-factory]

So are you asking if the savings will affect your eligibility for pension credit or some other sort of benefit?

[Maydup]

If the interest on your savings takes your income above the annual tax allowance then you would have to complete a tax self assessment.

[fiction-factory]

You'd need a large lump sum to generate interest over £1000pa at current low interest rates and even then the tax on the excess would be small.
But I think that this thread is about the impact of savings levels on entitlement to continue receiving certain benefits

[1944screen]

Yes it's to do with certain benefits I receive as a pensioner

[fiction-factory]

Okay thanks for clarifying. Some such as pension credit are means tested, some aren't (eg DLA and basic pension). So it depends on what the benefits are

[1944screen]

At the moment I am taxed on my state pens and works pens, plus some council tax benefit.

[fiction-factory]

I've tried but I'm still not clear then whether this about tax or entitlement to benefits so can't help

[bednobs]

Depending on the amount, it probably wont affect the tax you already pay on your pension. You need to have around 80k in savings to earn over 1k in interest. if you do go over 1k in interest , then the interest will start to be taxed too.
Regarding council tax reduction - if you are getting it because of a low income, you will probably lose that benefit if you have a load of savings, but if your savings deplete, you'll become entitled again. That's how means tested benefits work. However, all that advice is probably rubbish given I don't know a) how much you are expecting to receive and b) what benefits you are talking about. I presume you won't be worse off whatever happens because you'll have the money you've been left to defray the costs until you become entitled again

[THECORBYLOON]

If you receive Council Tax Benefit, that is affected by your savings and the limit is £16,000 unless you're receiving Guarantee Credit element of Pension Credit. If you are, the savings are ignored.

If you're not receiving that Guarantee, you'll need to inform your Council as soon as you receive the money.

[homelight123]

Savings is the cash someone has left over after they subtract their patron spending from their disposable income over a given time period. Savings may be used to growth earnings thru making an investment.
KEY TAKEAWAYS
Savings refers to the quantity left over after an individual's consumer spending is subtracted from the quantity of disposable income earned in a given period of time.
Savings can be used to boom income thru investing.
Saving is income now not spent, or deferred intake. Methods of saving include placing cash apart in, as an example, a deposit account, a pension account, an investment fund, or as cash.Saving additionally involves decreasing expenses, consisting of routine prices. In phrases of personal finance, saving usually specifies low-hazard upkeep of money, as in a deposit account, as opposed to funding, in which danger is a lot better; in economics more broadly, it refers to any earnings now not used for instant intake. Saving does not robotically consist of hobby.Saving differs from savings. The former refers back to the act of now not consuming one's assets, while the latter refers to either a couple of opportunities to reduce prices; or one's belongings inside the shape of cash. Saving refers to an hobby taking place through the years, a float variable, while financial savings refers to some thing that exists at any one time, a inventory variable. This distinction is regularly misunderstood, or even professional economists and funding specialists will often talk to "saving" as "savings".

[fiction-factory]

^I was okay with that until I got to " Saving does not robotically consist of hobby."