Personal savings allowance: tax tips

As interest rates rise, more taxpayers risk paying tax on savings income due to frozen thresholds but there are ways to mitigate tax bills, explains Laura Suter, head of personal finance at AJ Bell

Individuals pay tax on interest they earn on cash savings that exceeds the personal savings allowance, which currently stands at £1,000 for basic rate taxpayers and £500 for higher rate taxpayers. Additional rate taxpayers get no exemption and pay tax on all cash interest they receive.

Your free features:

Breaking news and expert analysis
Customisable daily newsletters
Six free CPD learning modules each year
Personalised CPD tracker
Top 75 Firms league tables
Regulatory changes
Hardman’s Tax Data

Tax | Personal tax changes from 6 April 2026

Tax | Top tips: year end tax planning for owner managed businesses

Tax | Avoiding tax traps for 40% payers as fiscal drag bites

Tax | Top 10 tax tips for year end planning

Tax | Top 10 tips on filing self assessment tax returns

Navigate

Tax Services

Your free features:

Sign up to Business & Accountancy Daily