We’re pensioners earning less than £1,000 in savings interest, are we over-taxed? STEVE WEBB replies

I have noticed that both my husband and I have had a deduction made to our tax codes for untaxed interest.

We are both only in receipt of company pensions and are entitled to the standard rate of tax-free income so surely should be allowed £1,000 personal savings allowance.

Interest received in both cases is less than this allowance. In my case I only receive £7,000 a year in pensions so this makes any deduction even stranger.

Can you please advise if this is a common problem. I know in my case it doesn’t make any difference to my income but my husband

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