Confusion over total interest allowed before being taxed

pennyfarthing66

Hi
Can anyone please confirm if my assumption is correct or erroneous.
If a basic rate taxpayer you are allowed the personal allowance of £1000, plus the starting rate for savings of £5000, making a total of £6000 in interest earnings being allowed before being subject to tax?  Or is it only the £1k personal allowance relevant here?

Thanks.

gravel_2

It's quite clearly explained by the government here with worked examples:
https://www.gov.uk/apply-tax-free-interest-on-savings

Not everyone gets the starting rate - it depends what you earn. It's impossible to specifically answer your question without knowing how much you earn.

pennyfarthing66

Thanks @gravel_2, that is very helpful.

ColdIron

pennyfarthing66 said:

Hi
Can anyone please confirm if my assumption is correct or erroneous.
If a basic rate taxpayer you are allowed the personal allowance of £1000, plus the starting rate for savings of £5000, making a total of £6000 in interest earnings being allowed before being subject to tax?  Or is it only the £1k personal allowance relevant here

Terminology matters here

You have:
Personal Allowance: £12,570 for most

Starting Rate for Savings: £5,000

Personal Savings Allowance: £1,000 as a basic rate tax payer