The personal savings allowance is an amount of money that an individual is entitled to earn each year from savings interest without having to pay tax on the interest. In the United Kingdom, the personal savings allowance is set by the government and is subject to change from year to year.

The personal savings allowance applies to interest earned on most types of savings accounts, including cash ISAs and non-ISA savings accounts. It does not apply to interest earned on dividends or to other types of investment income.

The amount of the personal savings allowance that an individual is entitled to depends on their income tax bracket. For the 2021/2022 tax year, individuals who are basic rate taxpayers (with an annual income of up to £50,000) are entitled to a personal savings allowance of £1,000, while higher rate taxpayers (with an annual income of between £50,001 and £150,000) are entitled to a personal savings allowance of £500. Additional rate taxpayers (with an annual income of over £150,000) are not entitled to a personal savings allowance. It is important to be aware of the personal savings allowance, as it can affect an individual's tax liability on savings interest. If you have any questions about the personal savings allowance or need help with your tax return, you can contact HM Revenue and Customs (HMRC) for assistance