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Martin Lewis explains how to increase tax-free HMRC Personal Allowance to £18,570
Martin Lewis outlines how combining three UK allowances can shield up to £18,570 of savings interest from tax, benefiting especially pensioners and low earners, HMRC data shows.
- On his ITV1 show, Martin Lewis explained some savers can legally earn £18,570 tax-free by stacking allowances.
- On top of the £12,570 Personal Allowance, the Starting Savings Rate and the Personal Savings Allowance can let lower earners earn £18,570 tax-free, HMRC says.
- Many savers assume interest is automatically taxed; however, the starting savings rate reduces by £1 for each £1 above £12,570 and ends at £17,570, enabling up to £18,570 tax-free.
- Lewis stresses the rule mainly helps pensioners and lower earners, especially as cash ISA interest sits outside the allowance system and can be tax-free on top.
- With savings rates still competitive, Lewis's guidance is timely as millions of savers may be missing out on allowances this current tax year.
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16 Articles
The Herald Scotland+15 Reposted by 15 other sources
Martin Lewis explains how to increase tax-free HMRC Personal Allowance to £18,570
Millions of savers may be missing out on valuable tax allowances that could legally shield thousands of pounds in interest from tax.
·Scotland, United Kingdom
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Total News Sources16
Leaning Left1Leaning Right0Center12Last UpdatedBias Distribution92% Center
Bias Distribution
- 92% of the sources are Center
92% Center
C 92%
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