Personal Savings Allowance
From 6 April 2016, individuals earn interest on their savings tax free up to a certain amount. The allowance depends on the individual's income: basic rate tax payers are able earn up to £1,000 in savings interest tax free and higher rate tax payers are able to earn £500 tax free. Additional rate tax payers do not have a Personal Savings Allowance.
Kingdom Bank pays all savings interest gross - meaning that there is no tax deducted.
This means that individuals who exceed their Personal Savings Allowance, or who do not have one, will owe tax on some, or all, of their savings interest. For more information please see the latest Government information at www.gov.uk/government/publications/personal-savings-allowance-factsheet, or contact HMRC at www.gov.uk/contact-hmrc or on 0300 200 3310.