Another non-allowance for personal savings

More details have emerged about the forthcoming personal savings allowance.

More details have emerged about the forthcoming personal savings allowance.

Draft clauses of the Finance Bill 2016 were issued in December, helping to keep tax aficionados amused over the festive season. They were accompanied by a raft of explanatory material, but there were still plenty of questions left unanswered.

One change to tax from 6 April did become clearer: the introduction of the new personal savings allowance (PSA). This was announced in the March 2015 Budget, but very limited information was given about how it would work in practice. The draft clauses and background notes have now told us:

The new allowance could be worth a tax saving of up to £200 a year, but with interest rates so low, do talk to us about how – or even whether – the allowance is worth using to the full.

The value of tax reliefs depends on your individual circumstances. Tax laws can change. The Financial Conduct Authority does not regulate tax advice.