What is the Personal Savings Allowance (PSA)?

The Personal Savings Allowance permits you to earn a certain amount of income each year, tax-free.

How much tax relief you are entitled to depends on your individual circumstances and tax payer status.

For basic rate tax payers, who earn less than £43,000 per tax year, the entitlement is up to a maximum of £1000 per tax year.

For higher rate tax payers, who earn between £43,000 and £150,000 per tax year, the entitlement is up to a maximum of £500.

Tax treatment depends on the individual circumstances of each client and the basis of taxation under tax legislation is subject to change in the future.