Interest on savings - personal allowance

Just a question about something I am a little unsure of. I am basic rate tax band, so I have an allowance of £1000 savings interest (without paying tax). Is that a total for the tax year (April to April)? In other words, if I earned zero in interest from April 2022 until October 2022, but then earned £750 - £1000 in interest in the remaining six months until April 2023 (meaning an annual rate of £1500 - £2000) would that mean I would still pay no tax? Would my tax code remain unchanged for the following tax year? It seems obvious that it wouldn't change, since I am within the £1000 allowance for the year - I'm just aware that the monthly amount I would be making would make it appear that I would be over £1000 for the following year. Hopefully that makes sense! Thanks for any response!

Yes, the savings nil rate of tax (aka PSA) is for a tax year. If you earned say £900 in interest then that would be taxed at 0%. If you earned £1200 then £1000 would be taxed at 0% and £200 at 0%. The above assumes you are paying enough basic rate tax on your job/pension income to not have any savings starter rate band available.

Hi,
 

penguinhat,

It's an annual allowance that resets once the tax year ends. Any interest between 06/04/2022 and 05/04/2023 is included, and anything above the £1,000 is taxable at the Basic Rate. It would be the same is you had £0 interest throughtout the year but were then paid £,1000 on the last day of the tax year. Thank you.