Final Declaration · 2026/27 guide
Savings & investments
ONLY£15A MONTHUnderstand how bank interest and dividends fit alongside your business income, including allowances and overseas investment records.
In developmentWho this guide is for
Sole traders and landlords receiving personal bank interest or dividends from UK or overseas investments.
Covered in this guide: UK interest, UK dividends, foreign interest and foreign dividends.
Interest allowances depend on your whole income
The Personal Savings Allowance is up to £1,000 for basic-rate taxpayers and £500 for higher-rate taxpayers; additional-rate taxpayers do not receive it. Your other income helps determine which band applies. The Personal Allowance and starting rate for savings can also matter, so do not assume every saver has the same tax-free amount.
Dividends have a separate allowance
The dividend allowance is £500 for 2026/27. It is separate from the savings allowance, and the tax rate on dividends above available allowances depends on your tax band. Retain dividend vouchers and investment statements, including reinvested dividends. Interest and dividends within an ISA are tax-free and should not be mixed with taxable investment income.
Overseas investments need more than the bank deposit
A foreign dividend or interest payment may arrive after overseas tax has been withheld. Retain the gross amount, foreign tax and currency conversion evidence. Whether UK tax and relief apply depends on your circumstances and relevant treaty rules. A net sterling deposit alone is not enough to establish the correct annual figures.
Your questions, answered
Is my savings allowance a business expense?
No. It is part of the personal tax treatment of savings income, not a deduction from your business sales or expenses.
Does connecting my bank complete this part of my return?
No. Bank records can help identify receipts, but annual certificates, account ownership and investment statements may still be needed. Avona’s annual interest and dividend support is in development.
Are investment sales the same as dividends?
No. A dividend is income. Selling shares or other investments may create a capital gain or loss, which requires its own records and review. See the Capital Gains Tax hub.
The other parts of your annual return
Employment & PAYE
A job alongside your business? Understand how employment pay, tax already deducted and benefits fit into your annual MTD tax return.
Explore the guide In developmentPensions & retirement
Keep pension receipts separate from rental income, and understand where private pension contributions and tax relief enter your annual review.
Explore the guide Property quarterly support readyProperty & overseas income
Bring UK and overseas rental records into focus, while keeping foreign investment income and annual tax relief claims distinct.
Explore the guide In developmentCapital Gains Tax
Understand the difference between income and asset disposals, and why some property gains need action before your annual return.
Explore the guide In developmentAllowances & charges
Prepare the personal details behind student loan repayments, charitable giving, Marriage Allowance, Child Benefit charges and voluntary Class 2 National Insurance.
Explore the guideGet your records ready for the year ahead.
Use Avona for the quarterly features available now. If your annual return includes other income, gains or reliefs, check that the features you need are available before choosing your filing route.