Cash & savings · Explainer
Personal savings allowance: how tax on interest works before and after 2027
Basic rate taxpayers can receive £1,000 of interest a year tax-free and higher rate taxpayers £500, with up to £5,000 more at 0% for people on low incomes. Budget 2026 kept those allowances but raised tax on savings interest above them to 24%, 44% and 49% from 6 April 2027.
