Released 1 April 2016

HMRC have published a Policy Paper on the new Personal Savings Allowance (PSA) for individuals.

Broadly, the PSA means that basic rate tax payers will be able to receive up to £1,000 of savings income, and higher rate taxpayers up to £500 of savings income, without any tax being due. Alongside the introduction of the PSA, banks etc. will cease to deduct tax from account interest they pay to customers.

The PSA will be introduced with effect from 6 April 2016.

More details are available here.