Personal Savings Allowance - FAQs
How much is the Personal Savings Allowance?
- Basic rate taxpayers: Up to £1,000 in savings income is tax-free
- Higher rate taxpayers: Up to £500 in savings income is tax-free
- Additional rate taxpayers: No Personal Savings Allowance
Do I need to do anything to claim my personal allowance?
No, from 6 April 2016, we will pay gross interest on all of your savings and interest paying current accounts. This means that no tax will be automatically deducted from interest on your behalf.