The government announced at Budget 2014 that from April 2015, it would replace the 10% ‘starting-rate’ of tax for savings income with a new 0% rate.
Furthermore, the amount of savings income that the new 0% rate applies to is increased from £2,880 to £5,000.
This means that if your total income (things like wages, pension, benefits and savings income) is less than £15,600, you will be eligible to register with your bank or building society to receive some or all of your savings income tax-free.
By Jo Nockels
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