Ketone111

Thank you for your speedy response. I need to point out that the sums quoted for the question are gross values and do not include my personal allowance. Information on Gov.UK seems to indicate that the providing total gross income after tax allowance does not exceed £37700 then savings would be taxed at 20%. Should the savings interest be included in the calculation of gross income?

In January 2025 I will start to receive the state pension. Whilst this does not affect my Personal Savings Allowance for the tax year 2024-25. It will have an effect for the tax year 2025-26. My occupational pension and state pension will be in the region of £44,000, however my savings interest will be in the region of £10000, this will push me over £50271 tax threshold for 20% tax. Will I receive a lower Personal Savings allowance and have to pay 40% tax on Savings interest.