Answers · UK 2025/26
What is the starting rate for savings in 2026/27?
The starting rate for savings is 0% on up to £5,000 of savings income, available to those whose non-savings income is below £17,570 (Personal Allowance plus the £5,000 band).
Full answer
The starting rate for savings is a 0% tax rate on up to £5,000 of savings income (bank interest, building society interest, etc.) in 2026/27. It is available to individuals whose non-savings income (employment, self-employment, pension income) does not exceed £17,570. For every £1 of non-savings income above the £12,570 Personal Allowance, the starting rate band is reduced by £1. So if your non-savings income is £13,570 you can receive up to £4,000 of savings interest at 0%; if it is £17,570 or above, the starting rate is unavailable. This relief is separate from the Personal Savings Allowance (£1,000 for basic-rate taxpayers, £500 for higher-rate, £0 for additional-rate). Used together, some individuals with low income can receive over £18,000 of savings interest tax-free in a single year.
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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.