Deduction of income tax from savings income: implementation of the Personal Savings Allowance

The Personal Savings Allowance will be introduced from 6 April 2016, as announced in the March 2015 Budget.

As a consequence, tax will no longer be deducted at source from bank and building society interest.

HM Revenue & Customs (HMRC) is considering changes to rules on deduction of tax from other types of savings income as well.

This consultation seeks views on a series of options, ranging from retention of existing rules to outright abolition.