How to tax on my interest, 40% or 20%

Good morning, I would like to ask for how to do the tax calculation. For example, I only earn interest from bank and no other income or pension, and the annually interest amounted to GBP 5,5270. I want to know whether the whole amount is taxed on 40% or the first GBP 5,0270 is taxed on 20% and the remaining GWP 5,000 is taxed on 40%. Your answer to the question is much appreciated. Thanks.

You have a Personal Savings Allowance of £1000, so not taxed on first £1000

If that is your only income, virtually guaranteed to be below your Personal Tax Allowance, so will not pay any tax at all

Thank you for your reply. I want to know if bank savings interest is my only income. And the amount is in the higher rate tax band. I would like to know if the interest on savings is taxed in the same way as income, i.e. after deducting all available allowances, the assessed amount is calculated at the basic rate of 20%, up to £50,270, and the remaining balance is calculated at 40% for the higher rate. Thank you.

Hi,
That is correct.
Thank you.

Hi tommy leung,
If your bank interest is your only source of income, the first £12,570 will be tax free, after your tax free allowance is applied.
After this, the Personal Savings Allowance allows an additional £1000 of bank interest to be received tax-free.
The next £37,700 of your income will then be chargeable at the basic 20% rate. The remaining £4000 will be chargeable at the 40% higher rate of tax.
Thank you. 

I think this is still incorrect. Should you not apply the starting rate for savings also? Since their non-savings income is 0, I would expect them to still have a £5,000 starting rate allowance. If this is the case, would the first £18,570 (12,570 + 1000 + 5000) be tax-free?

Hi,
That is correct, as your income is entirely savings interest, the £5000 starting rate for savings allowance will still apply. Also, as your total income takes you into the higher rate of 40%, the personal savings allowance is amended to £500. You can see guidance here:
Tax on savings interest
We apologise for the oversight.
Thank you.