All UK taxpayers will have a Personal Savings Allowance which will allow most UK taxpayers to earn tax-free interest on their savings. For basic rate taxpayers this allowance will be £1,000 and for higher rate taxpayers it’s £500. If you earn interest above your Personal Savings Allowance in any one tax year you may need to make arrangements with HMRC to pay tax on this interest.
Visit the tax on savings interest page on gov.uk to find out more.
