Tax on Savings Interest

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About Course

With higher interest rates, more savers are paying tax on their interest without realising. Learn how the Personal Allowance, the starting rate for savings and the Personal Savings Allowance work for 2026/27, how HMRC collects tax on interest, and the savings tax rate rise announced for April 2027.

Tutwoo is an independent learning provider. This course gives general information about tax on savings interest, checked against GOV.UK in October 2026. It is not tax advice.

What Will You Learn?

  • Work out whether you owe tax on your savings interest Use the starting rate for savings and Personal Savings Allowance correctly Understand how HMRC collects the tax through your tax code or a tax return Use ISAs and other tax-free options to reduce tax

Course Content

Course Lessons

  • Your tax-free allowances for interest
  • How the tax is collected
  • Reducing tax and what changes in 2027

Sources & Further Reading
The official guidance this course is based on.

Final Assessment

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