Tax on interest earned

Am I correct in thinking that if I have a total pension income of £10,000, I am able to receive £2570 ( remains of my personal allowance) plus £5000 (starter rate) plus £1,000 (personal interest tax relief) of tax relief on saving interest paid, a total of £8570. I have been confused by the statement in your website stating a maximum of £5000 tax relief is allowed on interest payments. I would be grateful for a response, thus allowing me to plan for next year, thank you.

Hi

If your other income is up to £17,570 you would receive the the starter rate for tax on savings of up to £5000.
If you other income is above £17,570 then it would be the £1000 personal savings allowance if a basic rate tax payer. 

Thank you

Dear HMRC Admin5, If my income solely comes from interest earned (no pension, no dividend, no capital gain), at what level shall I need to pay tax when interest received exceeding (a) GBP12,570, (b) GBP17,570 or (c) GBP18,570? Thank you. Jones

Hi Je77 Jones

For 24/25 it is £18570.

Thank you

Hi, I live in UK but have a USD savings account with HSBC Expat in Jersey. Do I need to file a self assessment for interest earned with UK government and Jersey government? If yes, what are the criterias for tax on interest earned in those two places? Thanks.

Hi 4740 Wong,
If you are resident in the UK and have an overseas bank account, you will need to declare the interst to HMRC, in a self assessment tax return. Please also have a look at the tax treaty that exists with Jersey:
2018 Jersey -UK Double Taxation Agreement – in force)
To determine if your interest is also taxable in Jersey.
If it is, you can claim a Foreign Tax Credit of up to 100% of the foreign tax paid.
Thank you.