Starting tax rate for savings interest

06 March 2015

From 6 April, one million savers with an annual income under £15,600 will be able to get their savings interest paid completely tax-free.

With one month to go until over a million savers no longer have to pay tax on their savings, the Chancellor has announced a new online calculator to help people work out if they are eligible.

A key part of the government’s long term economic plan is to support savers at all stages of their lives. That is why the government announced at Budget 2014 that it would abolish the 10 per cent starting rate of tax for savings, replacing it with a new 0 per cent rate.

The government is also increasing the amount of savings this starting rate applies to from £2,880 to £5,000.

An additional 500,000 savers could also get back some of the tax they’ve paid on their savings interest.

For further details, read the GOV.UK press release.