Less: tax suffered on bank interest (£46,050 x 20%)
(9,210)
Repayable
(1,177)
Savings income is taxed at 10% to the extent that it falls into the savings income starting rate band, 20% to the extent it is in the basic rate band and 40% to the extent that it falls into the higher rate band.
The tax suffered on bank interest is available to set off against the tax liability. The tax suffered is repayable to the extent that it exceeds the tax liability.
