Personal Savings Allowance

Information about the new Personal Savings Allowance, which was introduced from 6 April 2016.



From April 2016 HM Revenue and Customs introduced a tax-free Personal Savings Allowance of £1,000 (£500 for higher rate taxpayers) for savings income or interest.

The new allowance means that most people will no longer pay tax on their savings interest.

Published 18 March 2015
Last updated 25 January 2018 + show all updates
  1. Section 7 updated with information on sole bank accounts, joint account holder and customers not in Self-Assessment.
  2. Reference to notify HMRC of your share of the interest via form BBSI5 removed because it is no longer relevant.
  3. Personal savings allowances have been updated to the values running from April 2017.
  4. Updated with more information on tax-free products that do not count towards PSA
  5. Personal Savings Allowance factsheet withdrawn. The information in the factsheet has been incorporated into the latest information published on 4 February 2016.
  6. Latest information added about the Personal Savings Allowance, which comes into effect from 6 April 2016.
  7. First published.