Personal savings allowance
You may get up to £1,000 of interest tax-free depending on which income tax band you're in. This is your personal savings allowance.
| Tax Year | Basic rate taxpayer | Higher rate taxpayer | Additional rate taxpayer |
| 2025/26 | £1,000 | £500 | Nil |
| 2024/25 | £1,000 | £500 | Nil |
| 2023/24 | £1,000 | £500 | Nil |
| 2022/23 | £1,000 | £500 | Nil |
| 2021/22 | £1,000 | £500 | Nil |
| 2020/21 | £1,000 | £500 | Nil |
| 2019/20 | £1,000 | £500 | Nil |
| 2018/19 | £1,000 | £500 | Nil |
| 2017/18 | £1,000 | £500 | Nil |
| 2016/17 | £1,000 | £500 | Nil |
The allowance applies to interest from:
- Bank and building society accounts
- Savings and credit union accounts, unit trusts, investment trusts and open-ended investment companies
- Peer-to-peer lending
- Trust funds
- Payment protection insurance
- Government or company bonds
- Life annuity payments
- Some life insurance contracts.
Savings already in tax-free accounts like Individual Savings Accounts and some National Savings and Investments accounts do not count towards your allowance.
Disclaimer
The information provided is based on our current understanding of the relevant legislation and regulations and may be subject to alteration as a result of changes in legislation or practice. Also it may not reflect the options available under a specific product which may not be as wide as legislations and regulations allow.
All references to taxation are based on our understanding of current taxation law and practice and may be affected by future changes in legislation and the individual circumstances of the investor.