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Taxable income

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JustkeepswimmingDonna Thu 01-May-25 12:29:38

When my mum died I received some money from her estate. I am retired so have no earnings from employment. However I have a private pension and interest on savings which, combined, are below the £12,570 personal allowance. But if I need to top up my bank balance by occasionally transferring money out of my savings into my bank account does this count as income?

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Silverbrooks Thu 01-May-25 12:44:46

No.

Your savings comprise capital and income. Say you put £10,000 on deposit and it earned you £500 a year. The one is capital and the other income.

Either way, the £500 isn't going to be taxed as your income is below the tax personal allowance plus there is a tax free personal savings allowance of £1,000 p.a for basic rate taxpayers (£500 for higher rate).

In accounting terms, cash in a bank account is capital. Moving it about does not constitute income.

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M0nica Thu 01-May-25 14:02:15

No.

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Norah Thu 01-May-25 15:13:15

No.

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JustkeepswimmingDonna Thu 01-May-25 15:19:20

Thank you smile

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