Personal Savings Allowance (PSA)
This information is about the Personal Savings Allowance, which was originally introduced from 6 April 2016.
The new allowance means that most people will no longer pay tax on their savings interest. The guidance has been updated at section 7 ‘What you need to do’ with information on sole bank accounts, joint account holder and customers not in self-assessment.
For sole bank account holders (not in self-assessment), HMRC will normally collect the tax by changing their tax code. Banks and building societies will give HMRC the information they need to do this.
However, joint bank account holders (not in self-assessment) need to contact HMRC and report the saving income or interest as appropriate.