HMRC commissioned research to explore the saving behaviours and profiles of savings allowance beneficiaries.
HM Revenue and Customs (HMRC) commissioned IFF Research to conduct research to explore the saving behaviours and profiles of beneficiaries of 2 overlapping savings allowances: the Starting Rate for Savings (SRS) and the Personal Savings Allowance (PSA). These allowances interact with the Personal Allowance to calculate how much savings income is subject to tax.
The research focussed on individuals with above-average levels of savings income (ie over £500 per year) and lower earned income (under £20,000 per year), who were beneficiaries of both allowances.
The primary aims of the research were to understand:
- demographic, financial and lifestyle profiles at both individual and household levels
- levels of awareness, or comprehension, of savings reliefs and exemptions
- financial behaviour towards Individual Savings Account (ISA) products and the annual ISA allowance
This research consisted of a telephone survey of 1,209 individuals with above-average levels of savings income, and 37 in-depth interviews with some of the survey respondents.
Fieldwork took place between August and October 2019. This research report was not published in 2020 as the COVID-19 pandemic brought a delay in publishing a number of research reports across the government.
The views in the report are the author’s own and do not necessarily reflect those of HMRC.
Source & Report Download https://www.gov.uk/government/publications/savings-allowance-beneficiaries-with-above-average-savings-income