State pension, bank interest and allowance sharing

Have State pension income plus £600 interest Have given 1250 tax allowance to husband, still below tax threshold. What happens when my pension still below £12500, but interest income exceeds the allowed limit ?

Hi,

The Personal Savings Allowance (PSA) introduced a 0% rate band for untaxed interest, up to the value of £1000 for Basic Rate taxpayers. If your untaxed interest exceeds both this amount, and any remaining tax free personal allowances, then the remaining amount of untaxed interest would be subject to the regular 20% Basic Rate of tax.

Thank you.