aa bb
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Dear SFE,
While reading the SFE/PN1N/1819 guidance notes page 18 "When working out your taxable unearned income, you should not include... ISAs". I am also not to include any child state benefits as detailed which I understand.
Question 1 - My grandparents have opened savings accounts for me for the future i.e. house deposit, driving lessons, etc. I do not receive an income or have access to these accounts and as non tax payer i.e. 16/17 my income did not exceed my personal allowance, savings income and personal saving allowance (11k+5k+1k). In reality the interest is nowhere near this figure. Am I correct in my interpretation that this is therefore "non specifically taxable" and not to be included?

Question 2 - My mum is a non tax payer and has a savings account. She is subject to the same allowances above (11k+5k+1k). Once again, the interest is nowhere near this figure. Am I correct in my interpretation that this is therefore "non specifically taxable" and not to be included?

Question 3 - My parents both have ISAs which they are using for pension planning and as such do not receive an income. As stated in the SFE/PN1N/1819 guidance notes page 24 "unless specifically non-taxable, for example, a non-taxable Individual Savings Account (ISA) etc." For simplicity am I correct in my interpretation that these are not to be included when they complete section 12 household income?

Sorry, to be specific, but I wish to clarify the above points as the notes seem to be clearer in the student (section 8) and a bit vague in the Parents (Section 12). Just want to be sure and not delay the processing the application form.

Best wishes.
Adam.
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Catherine SFE
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(Original post by aa bb)
Dear SFE,
While reading the SFE/PN1N/1819 guidance notes page 18 "When working out your taxable unearned income, you should not include... ISAs". I am also not to include any child state benefits as detailed which I understand.
Question 1 - My grandparents have opened savings accounts for me for the future i.e. house deposit, driving lessons, etc. I do not receive an income or have access to these accounts and as non tax payer i.e. 16/17 my income did not exceed my personal allowance, savings income and personal saving allowance (11k+5k+1k). In reality the interest is nowhere near this figure. Am I correct in my interpretation that this is therefore "non specifically taxable" and not to be included?

Question 2 - My mum is a non tax payer and has a savings account. She is subject to the same allowances above (11k+5k+1k). Once again, the interest is nowhere near this figure. Am I correct in my interpretation that this is therefore "non specifically taxable" and not to be included?

Question 3 - My parents both have ISAs which they are using for pension planning and as such do not receive an income. As stated in the SFE/PN1N/1819 guidance notes page 24 "unless specifically non-taxable, for example, a non-taxable Individual Savings Account (ISA) etc." For simplicity am I correct in my interpretation that these are not to be included when they complete section 12 household income?

Sorry, to be specific, but I wish to clarify the above points as the notes seem to be clearer in the student (section 8) and a bit vague in the Parents (Section 12). Just want to be sure and not delay the processing the application form.

Best wishes.
Adam.
Hi Adam

Student Finance England do not take into consideration any savings held in an ISA or any interest gained as the interest is non taxable.
Therefore we do not consider ISAs to be income and do not require you to declare this product on your application. I have provided a list of taxable income that when processing your application.

TAXABLE INCOME
  • Interest from a bank, building society or local authority;
  • Interest from National Savings (other than first £70 of National Savings Ordinary Account interest) and Investments;
  • Interest distributions from authorised unit trusts and open-ended investment companies;
  • Dividends from shares, UK authorised unit trusts and open-ended investment companies;
  • Private pensions, i.e. pensions from previous employers, personal pensions, retirement annuities;
  • Other income and lump sums (for example - pensions lump sums, pension payment or redundancy payments);
  • Earning from employment;
  • Earnings from self-employment (after deduction ofallowable expenses)*;
  • Rent from letting property;
  • Income from the 'Rent A Room' scheme
  • Income from trust funds;
  • Income from taxable benefits in kind;
  • Chargeable event gains from life insurance policies (only life insurance paid monthly is classed as a taxable benefit);
  • Income from outside the UK
  • Share of joint income.
  • Foster Care Payments*

Thanks

Catherine
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aa bb
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[QUOTE=Catherine SFE;76094120]Hi Adam

Student Finance England do not take into consideration any savings held in an ISA or any interest gained as the interest is non taxable.
Therefore we do not consider ISAs to be income and do not require you to declare this product on your application. I have provided a list of taxable income that when processing your application.

TAXABLE INCOME
  • Interest from a bank, building society or local authority;
  • Interest from National Savings (other than first £70 of National Savings Ordinary Account interest) and Investments;
  • Interest distributions from authorised unit trusts and open-ended investment companies;
  • Dividends from shares, UK authorised unit trusts and open-ended investment companies;
  • Private pensions, i.e. pensions from previous employers, personal pensions, retirement annuities;
  • Other income and lump sums (for example - pensions lump sums, pension payment or redundancy payments);
  • Earning from employment;
  • Earnings from self-employment (after deduction ofallowable expenses)*;
  • Rent from letting property;
  • Income from the 'Rent A Room' scheme
  • Income from trust funds;
  • Income from taxable benefits in kind;
  • Chargeable event gains from life insurance policies (only life insurance paid monthly is classed as a taxable benefit);
  • Income from outside the UK
  • Share of joint income.
  • Foster Care Payments*

Thanks

Catherine.


Dear Catherine,

Thank you for your reply and clearing up question 3.

Is question 1 classed as "non specifically taxable" as these accounts are effectively held in trust and therfore do not need to included?

Is question 2 clased as as "non specifically taxable" due to personal circumstances ie. non tax payer and therfore do not need to included?

Best wishes.
Adam.
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Catherine SFE
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#4
[QUOTE=aa bb;76095054]
(Original post by Catherine SFE)
Hi Adam

Student Finance England do not take into consideration any savings held in an ISA or any interest gained as the interest is non taxable.
Therefore we do not consider ISAs to be income and do not require you to declare this product on your application. I have provided a list of taxable income that when processing your application.

TAXABLE INCOME
  • Interest from a bank, building society or local authority;
  • Interest from National Savings (other than first £70 of National Savings Ordinary Account interest) and Investments;
  • Interest distributions from authorised unit trusts and open-ended investment companies;
  • Dividends from shares, UK authorised unit trusts and open-ended investment companies;
  • Private pensions, i.e. pensions from previous employers, personal pensions, retirement annuities;
  • Other income and lump sums (for example - pensions lump sums, pension payment or redundancy payments);
  • Earning from employment;
  • Earnings from self-employment (after deduction ofallowable expenses)*;
  • Rent from letting property;
  • Income from the 'Rent A Room' scheme
  • Income from trust funds;
  • Income from taxable benefits in kind;
  • Chargeable event gains from life insurance policies (only life insurance paid monthly is classed as a taxable benefit);
  • Income from outside the UK
  • Share of joint income.
  • Foster Care Payments*

Thanks

Catherine.


Dear Catherine,

Thank you for your reply and clearing up question 3.

Is question 1 classed as "non specifically taxable" as these accounts are effectively held in trust and therfore do not need to included?

Is question 2 clased as as "non specifically taxable" due to personal circumstances ie. non tax payer and therfore do not need to included?

Best wishes.
Adam.
Hi Adam,

That is correct if its non taxable then it does not need to be included.

Thanks

Catherine
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aa bb
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#5
[QUOTE=aa bb;76095054]
(Original post by Catherine SFE)
Hi Adam

Student Finance England do not take into consideration any savings held in an ISA or any interest gained as the interest is non taxable.
Therefore we do not consider ISAs to be income and do not require you to declare this product on your application. I have provided a list of taxable income that when processing your application.

TAXABLE INCOME
  • Interest from a bank, building society or local authority;
  • Interest from National Savings (other than first £70 of National Savings Ordinary Account interest) and Investments;
  • Interest distributions from authorised unit trusts and open-ended investment companies;
  • Dividends from shares, UK authorised unit trusts and open-ended investment companies;
  • Private pensions, i.e. pensions from previous employers, personal pensions, retirement annuities;
  • Other income and lump sums (for example - pensions lump sums, pension payment or redundancy payments);
  • Earning from employment;
  • Earnings from self-employment (after deduction ofallowable expenses)*;
  • Rent from letting property;
  • Income from the 'Rent A Room' scheme
  • Income from trust funds;
  • Income from taxable benefits in kind;
  • Chargeable event gains from life insurance policies (only life insurance paid monthly is classed as a taxable benefit);
  • Income from outside the UK
  • Share of joint income.
  • Foster Care Payments*

Thanks

Catherine.


Dear Catherine,

Thank you for your reply and clearing up question 3.

Is question 1 classed as "non specifically taxable" as these accounts are effectively held in trust and therfore do not need to included?

Is question 2 clased as as "non specifically taxable" due to personal circumstances ie. non tax payer and therfore do not need to included?

Best wishes.
Adam.
Dear Catherine,

Looking at your explanation above could I simply just summarise that any interest gained from any other accounts is non taxable as we do not exceed the income thresholds(16/17) allowed by HMRC and therefore do not need to include this in the application form.

Best wishes,
Adam
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aa bb
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[QUOTE=aa bb;76095260]
(Original post by aa bb)

Dear Catherine,

Looking at your explanation above could I simply just summarise that any interest gained from any other accounts is non taxable as we do not exceed the income thresholds(16/17) allowed by HMRC and therefore do not need to include this in the application form.

Best wishes,
Adam
Dear Catherine,

Can I just check that your answer above closes this thread?

Thank you for you help and excellent customer service.

Best wishes,

Adam.
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John B SFE
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#7
[QUOTE=aa bb;76119802]
(Original post by aa bb)

Dear Catherine,

Can I just check that your answer above closes this thread?

Thank you for you help and excellent customer service.

Best wishes,

Adam.
Hi Adam,

Sorry for the delay in reply.

Yes, you've got that correct.

Kind regards,

John.
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