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Exclusion 96 - Scottish rate extended basic rate band not applying to savings and dividends income

Article ID: 3035
Last updated: 11 Dec, 2019

HMRC Filing Exclusion 96 applies to Scottish rate taxpayers who make pension contributions or gift aid payments which will extend the basic rate band. The basic rate band should be extended to non savings and savings income but the calculator is currently restricting relief to non savings income only.

For example:

In this example, the basic rate band has been extended from £31,580 to £34,080 for relief on the gift aid payments of £2,500. The non-savings income has used the total of the basic rate band and has pushed all of the savings income into the higher rate. 

However, the basic rate band for savings (based on UK rates) should have increased from £34,500 to £37,000. Non savings income has used £36,150 of this, so there is £850 available to use against savings income. £500 will be used for the nil rate leaving £350 which should be taxed at 20% rather than 40%. Therefore tax owed should be £70 less.

If you have a scenario which applies to this exclusion, a paper return should be filed together with a Reasonable Excuse form which refers to the exclusion number.

To print your tax return with a Reasonable Excuse form:

  1. Go to Check and Finish and select Print
  2. Within Printing Preferences, select HMRC within Who is it for? This will ensure that the reasonable excuse form is ticked.
  3. At the bottom of the screen you will see a 'Click here' to enable the entries to be made on the Reasonable excuse form.
  4. Click Close once completed.
  5. Create Preview to check pages.
  6. Hover the mouse over the return to see the Print options.

Article ID: 3035
Last updated: 11 Dec, 2019
Revision: 11
Views: 0
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Also listed in
folder Tax Return Production -> SA100 Individual Return