Glossary · Tax
Starting rate for savings
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Definition: Up to £5,000 of savings interest is taxed at 0% — but the band is reduced by £1 for every £1 of non-savings income above the £12,570 Personal Allowance.
Disappears entirely once non-savings income reaches £17,570. Most useful for people with low earnings, low pensions or in a gap year. Sits alongside the Personal Savings Allowance.
Primary source: gov.uk/apply-tax-free-interest-on-savings