Savings income from banks and building societies – Interest on savings is only taxable if it exceeds the ‘personal savings allowance’. This is £1,000 if your total taxable income (before taking off the personal allowance) is less than £50,270 in the tax year; and £500 if your total taxable income is between £50,270 and £125,140.

The UK rates and bands set out in 4 above apply to all UK taxpayers on their savings income, including Scottish and Welsh taxpayers. The tax rate applicable to your savings income depends on the level of your total taxable income. If all your taxable income is less than your personal allowances, no tax is due. If your taxable income (including interest but after deducting personal allowances) is less than £5,000, you are not liable for tax on the interest. If you are a basic-rate taxpayer and your taxable income is over £5,000, tax is due at 20% on savings income that exceeds your personal savings allowance. Higher-rate ta