Genuine sources
- Interest from savings and bonds.
- Dividends from investments.
- Rent from property.
- Royalties from work you created once.
The reality
Most passive income needs money or effort up front, and returns carry risk. Be sceptical of anything promising effortless, guaranteed returns.
Frequently asked questions
Is passive income tax-free?+
No — savings interest, dividends and rent can all be taxable, though allowances may apply. Check the current rules.