Taxation of saving interest

Any interest earned from a savings account over your Personal Savings Allowance is subject to income tax. If you are a taxpayer you would have to pay tax on your savings interest according to your income tax banding. Basic rate taxpayers have to pay tax at 20%. Higher rate and additional rate taxpayers must pay a further 20% or 25% respectively, either through Self Assessment or by contacting HM Revenue & Customs.

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