Interest received is paid gross ie no income tax is deducted at source
Your personal savings allowance (PSA) is a tax-free allowance that allows you to earn interest on your savings without paying tax on that interest. The allowance you get depends on what rate of income tax you pay:
Basic-rate (20%) taxpayers: you can earn £1,000 in savings interest per year with no income tax
Higher-rate (40%) taxpayers: you can earn £500 in savings interest per year with no income tax
Additional-rate (45%) taxpayers: £0 – you do not get any allowance.
You are liable to income tax even if you do not currently file a tax return