SAIM1112 - Savings and investment income: tax on savings and investment income: starting rate for savings
Where an individual鈥檚 non-savings income is less than the starting rate for savings limit, the savings income will be taxable at the 0% starting rate for savings up to the limit. From 6 April 2015 the limit is the individual鈥檚 personal allowance plus the starting rate band of 拢5,000.
Where an individual鈥檚 non-savings income exceeds the starting rate for savings limit, the starting rate for savings is not available.
Bank and building society interest is paid to individuals gross 鈥� without deduction of basic rate income tax.
Individuals can claim a repayment if some of their savings income is taxable at the starting rate for savings but tax has been deducted.