What is the base rate savings allowance?

What is the base rate savings allowance?

• A. £500
• B. £1,000
• C. £1,500
• D. £2,000

Answer: (B)

The base rate savings allowance is the amount of savings income that can be sheltered from tax within the basic rate band. For a basic-rate taxpayer, this allowance is £1,000, meaning up to £1,000 of interest from savings can be tax-free in a tax year. The other figures are not the standard base rate savings allowance.

The base rate savings allowance is the amount of savings income that can be sheltered from tax within the basic rate band. For a basic-rate taxpayer, this allowance is £1,000, meaning up to £1,000 of interest from savings can be tax-free in a tax year. The other figures are not the standard base rate savings allowance.