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|
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.