Savings interest and tax ?

[GT4P]

For example you have £500k in savings and at current rates of circa 3% you can earn £15k pa Interest but you have no other income does this mean you only pay tax on the amount after the tax allowance of £12750?
Or do you pay no tax as allowed £5k (£17750) on top of that as personal allowance?
I understand you can earn a £1000 interest if working and in the lower tax bracket?

[KenC]

The £1,000 applies to all so, with no other income, you have £12,570 plus £5,000 + £1,000 = £18,570 available tax free allowance on interest.

[Greenmantle]

https://taxscouts.com/the-tax-basics/tax-rate-savi...

This says the £12570 and £5000 are either / or. They are no additive.
£12570 if no other income
£5000 if other income is under £12570

Obviously double check this.

[KenC]

I see how you can read it that way but that interpretation is incorrect. You get all three allowances if no other income.

https://www.gov.uk/apply-tax-free-interest-on-savi...

Edited by KenC on Friday 4th November 10:18