Starting Rate Band

An individual may be eligible to earn up to £5,000 in tax free interest through the Starting Rate Band. However, this benefit is not available if their non savings and non dividend income exceeds £17,570. The Starting Rate Band is reduced by £1 for every £1 earned above the personal allowance. Individuals that are not eligible for the Starting Rate Band would instead have a Personal Savings Allowance of £1,000, for basic rate tax payers, or £500 if they are a higher rate tax payer.  Any interest income exceeding both the Starting Rate Band and the Personal Savings Allowance will be taxed at the individual’s marginal tax rate. If you would like more information on the Starting Rate Band, please do not hesitate to contact Danny Hockin on 023 8202 7481 or email Danny Hockin.