127. Charge to tax.

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