Personal Savings Allowance

Tax-free savings all changed from 6th April 2016 with the introduction of the new Personal Savings Allowance.  This is the amount you are able to save tax free and will depend on your total taxable income.

In a radical reform to the savings tax system, HM Revenue and Customs (HMRC) are creating a new Personal Savings Allowance (PSA, exempting the first £1,000 of savings income from any tax for basic rate taxpayers and the first £500 for higher rate taxpayers, savings up to £200 off an annual tax bill.  (This will not apply to additional rate taxpayers).