In more detail
- Personal Savings Allowance: £1,000 basic rate, £500 higher rate, £0 additional rate.
- Starting rate for savings: up to £5,000 more interest can be tax-free if your other income is under £17,570.
- From 6 April 2027: savings tax rates go up by 2 percentage points.
Example: a higher-rate taxpayer with £30,000 earning 2% gets £600 interest. £500 is tax-free, so they pay 40% on £100, which is £40 now and £42 from April 2027.
Related questions
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See everything that’s changing in April 2027.
Sources
Last checked against GOV.UK: 9 October 2026