Answers · UK 2025/26
How much can I earn in interest tax-free in the UK 2025/26?
Combine four allowances: £12,570 Personal Allowance (if unused by salary), £5,000 Starting Rate for Savings, £1,000/£500/£0 Personal Savings Allowance, and £20,000 ISA wrapper. Low earners can shelter £18,570+ of interest tax-free.
Full answer
UK tax-free savings allowance stacking 2025/26. (1) Personal Allowance £12,570 — if unused by salary, can shelter savings. (2) Starting Rate for Savings £5,000 — 0% band; reduces £1-for-£1 for non-savings income above PA. (3) Personal Savings Allowance — £1,000 basic / £500 higher / £0 additional. (4) ISA wrapper £20,000 — all tax-free. Examples. Low earner (£8k salary): PA covers salary; £4,570 PA spare; full £5,000 SR; £1,000 PSA = up to £10,570 + ISA = £30,570 tax-free interest. Pensioner with £12,570 State Pension: £5,000 SR + £1,000 PSA = £6,000 + ISA = £26,000. £50k higher-rate: £500 PSA + ISA only. Practical tip: low-earning partners can hold savings to use their full stack.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.