Your figures for one tax year
Extra tax on your interest in 2027/28
£0
What stays tax-free
- Personal Savings Allowance: the first £1,000 of interest for basic-rate taxpayers, £500 for higher-rate, nothing for additional-rate.
- Starting rate for savings: up to £5,000 of interest at 0%. It shrinks by £1 for every £1 of other income above £12,570, so it is gone once other income reaches £17,570.
- Any Personal Allowance your other income has not used.
- Interest inside an ISA. The cash ISA limit stays at £20,000 a year after the planned cut was dropped at the Budget.
- Premium Bond prizes.
How this is worked out
- Other income uses the Personal Allowance and tax bands first. Savings interest sits on top.
- Your Personal Savings Allowance depends on the highest band your total income reaches.
- 2026/27 uses 20%, 40% and 45%. 2027/28 uses the savings rates of 24%, 44% and 49%, which apply across the UK.
- The 2027/28 rates were announced at the Budget on 28 October 2026 and still need Finance Bill 2026-27 to become law.
- Not included: dividends, pension contributions and Scottish income tax bands on other income.
Sources: GOV.UK property and savings rates, GOV.UK tax on savings interest.