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 |
| 2023/2024 | £1,000 | £500 | Nil |
| 2022/2023 | £1,000 | £500 | Nil |
| 2021/2022 | £1,000 | £500 | Nil |
| 2020/2021 | £1,000 | £500 | Nil |
| 2019/2020 | £1,000 | £500 | Nil |
| 2018/2019 | £1,000 | £500 | Nil |
| 2017/2018 | £1,000 | £500 | Nil |
| 2016/2017 | £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.