I am retired receiving a small (taxed) pension. I have an Egg acc. - Should I have to pay tax on the interest?
If your total income is more than your exemptions & deductions, then yes, you will pay tax.
Yes, if you're paying tax on your pension then you've used up your allowances for "earned income". So will have tax deducted from savings. However, if you can find an investment that goes up in value - you have an allowance for capital gains. This is around 拢8,800 a year. This may be worth looking in to. If you get a book published and sell the copyright - it's a capital gain. Shares that go up in value are a capital gain. Some capital gains are exempt from the tax - such as cars and household furniture. If you buy a car at a good price, valet it and sell at a gain - the gain is tax free. But not if you do it as a business.
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