Tax depends on your personal circumstances and if in doubt you should seek professional advice. We cannot offer advice on tax. The tax summary we provide relates to the position of a UK resident individual taxpayer (not including trustees or personal representatives). Other categories of taxpayer should consider their own circumstances.
What is the Personal Savings Allowance?
From the 2016/2017 tax year you have a £1,000 (or £500 for higher rate taxpayers) tax free interest allowance. Additional rate taxpayers are not entitled to the personal savings allowance. This means the first £1,000 (£500 for higher rate taxpayers) of interest income will be free of income tax (but please see our article on Withholding Tax for information of when tax may be deducted from your returns). All investments on Abundance except variable return investments pay returns that are treated as interest.
What is the Dividend Allowance?
Since the 2016/2017 tax year, you have a tax-free dividend allowance and the dividend tax credit system which operated in earlier years ceased to apply. The tax-free dividend allowance for the 2020/21 tax year is £2,000. Variable return investments pay returns that are treated as dividends.
See our Help Centre article How are my Cash Returns taxed? for more information.