Income Tax Act 2007 section 12B

Individual's entitlement to a savings allowance

Section 12B determines the amount of an individual's personal savings allowance for a tax year, based on whether their income falls into the basic, higher or additional rate bands.

• Basic rate taxpayers receive a savings allowance of £1,000 per tax year
• Higher rate taxpayers receive a reduced savings allowance of £500 per tax year
• Additional rate taxpayers receive no savings allowance at all
• The Treasury may adjust these amounts by regulations, subject to parliamentary approval where amounts are reduced