IN PLAIN ENGLISH
Roughly what your investments might add to your tax bill for the year.
FULL DEFINITION
An estimate of the UK tax for one tax year on the dividends, capital gains and savings interest the app knows about, outside ISAs and pensions.
EXAMPLE
At 2026/27 rates, a basic-rate taxpayer with £2,500 of dividends, £1,200 of interest and £8,000 of gains: £215 + £40 + £900 = £1,155.
HOW IT'S CALCULATED
The estimated tax on Taxable Dividends, savings interest and Net Capital Gains for the tax year, added together, each worked out after its own allowance. With your tax band picked, every pound above an allowance is taxed at that band's rate. With your other income entered, the personal allowance (tapered away on high incomes) goes against that income first, then interest, then dividends, and each pound is taxed at the rate of the band it lands in; gains go on top, at the lower Capital Gains Tax rate within what's left of the basic-rate band and the higher rate above it. The rates and allowances are GOV.UK's for that tax year, checked on the date the widget gives. Anything not in the app, tax withheld abroad, losses from earlier years, pension contributions and Gift Aid are left out, so it isn't a tax return.
Educational content only. It is not personal financial advice.