Money Tax Smart

As a pensioner, Rupert can use tax reliefs to manage his savings and investments. The Personal Savings Allowance lets basic rate taxpayers like Rupert earn up to £1,000 interest tax-free, while higher rate taxpayers get £500. Individual Savings Accounts are also useful, as they are entirely tax-free for interest, dividends, or capital gains, making them a great option for pensioners.

Rupert can earn up to £500 in dividend income tax-free under the Dividend Allowance for 2024/25. Any extra dividends are taxed based on his Income Tax band. If Rupert sells stocks or property, gains over £3,000 may incur Capital Gains Tax. By spreading sales across years or using tax-efficient options like Individual Savings Accounts or pensions, Rupert can lower his taxes.