Income Tax Act 2007 section 7

The starting rate for savings and savings nil rate

Section 7 establishes two specific zero-rate bands that can apply to savings income, namely the starting rate for savings and the savings nil rate.

• The starting rate for savings is set at 0%, meaning qualifying savings income falling within this band is taxed at nil
• The savings nil rate is also set at 0%, providing a separate nil-rate band for savings income (commonly known as the personal savings allowance)
• Both rates were confirmed at 0% by the Finance Act 2016, which renamed and restructured these provisions from earlier legislation
• The "starting rate for savings" replaced what was previously known as the "lower rate" in older tax legislation