New 0% ‘starting rate’ on savings income

The ‘starting-rate’ of tax for savings income is cut to 0% for the first £5,000 of savings income from April 2015.

As a result most people with a total income of less than £15,600 will not pay any tax on their savings.

People with income over £15,600 may have some of their savings interest eligible for the 0% starting rate and some taxable at 20%.  In these cases an individual will be entitled to reclaim tax from HMRC using form R40 or by Self Assessment.