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Personal Savings Allowance

What is my personal savings allowance?

For Basic Rate Taxpayers

You will be able to earn £1,000 in savings interest before paying tax.
For example, a basic rate taxpayer would need a savings pot of £50,000 earning 2% interest before the £1,000 limit would be exceeded.

For Higher Rate Taxpayers

You will be able to earn £500 in savings interest before paying tax.

For Additional Rate Taxpayers

If you are an additional rate taxpayer (45%), there is no allowance applicable.

Please note:  If your income is less than £17,500, your starting rate for savings is a maximum of £5,000.  Every £1 of other income above your Personal Allowance reduces your starting rate for savings by £1.

More information about the HMRC guidance can be found here.