From: Ronald Raygun 
Subject: Re: TAX on savings
Newsgroups: uk.finance
Date: Fri, 21 Apr 2006 21:53:41 GMT

GSV Three Minds in a Can wrote:

> Bitstring , from the wonderful
> person fj  said
>>As an ordinary tax payer  (i.e. my earnings are well below any point at
>>which i should pay tax at the higher rate) do I owe any tax on savings
>>that have already been taxed at the normal (lower rate)? For example a
>>building society account?
> 
> No. The source deducts tax at 20% and the government is happy to make do
> with that instead of the 22% you 'should have' paid.

There is no "should have" about it, and no government is ever happy
to "make do".

20% is deducted because that is what you should pay.

Were you to get interest from somewhere which does not deduct tax
at source, you would still have only to pay 20% on it.

Capital gains are also taxed at 20%.