Personal Savings Allowance

Topic Author:

Claire Turner

Topic posted on:

9:38 GMT 10.12.15

Post Author Date

As announced at March Budget 2015, legislation will be introduced in Finance Bill 2016 to provide for a new tax-free Personal Savings Allowance (PSA) for individuals. This will apply a 0% rate for up to £1,000 of savings income, such as interest, paid to an individual (or £500 for individuals with any higher rate income). The PSA will not be available to individuals with any additional rate income.

Alongside the introduction of the PSA, banks, building societies and National Savings and Investments (NS&I) will cease to deduct tax from the account interest they pay to customers. These changes will have effect in relation to savings income paid or credited on or after 6 April 2016.

If you would like to discuss this further, please contact a member of the Beavis Morgan personal tax team on 020 7417 0417.

Claire Turner

09:38 GMT 10.12.15