tax on savings interest

[HannahSmith]

Sorry if this topic has been done before but I couldn't find an answer specific to my question.

If we were living on interest on savings then:

a) would we still get the 10% discount then the 20% discount before paying tax?

b) when you do pay the tax on whatever you have left, do you say that the first 4262 (or whatever the rate is) of you income is taxed at 0%, the next however much at the next rate etc (like the English system) or do you get taxed at whatever rate the whole of your income is, rather than a tiered system?

Sorry if this is a bit confusing .....!

Thanks very much.

Hannah