Tax is charged on interest1. Income tax is charged on the full amount of the interest arising in the tax year; and the person liable for any tax so charged is the person receiving or entitled to the interest2. This is subject to the application of the Personal Savings Allowance (PSA), which provides that from 6 April 2016 basic-rate taxpayers do not pay tax on the first £1,000 of savings income including interest earned on bank current accounts; higher-rate taxpayers can earn up to £500 of savings income tax free, but additional rate taxpayers have no PSA
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and millions of others like it, sign-in to LexisLibrary or register for a free trial.
EXISTING USER? SIGN IN
TAKE A FREE TRIAL
0330 161 1234