Taxpayers
We pay interest to taxpayers 'net' (after income tax has been deducted at the lower rate, currently 20%).
Basic rate payers
If your interest falls within the basic rate band of 20% you will have no more tax to pay on your interest, as the tax deducted from it at 20% will satisfy the tax due.
Higher rate payers
If you are a higher rate taxpayer you will have to pay the extra tax due on your interest (the difference between tax deducted at 20% and the higher rate of 40%).
Non-taxpayers
If you are a non-taxpayer, we can pay your interest 'gross' (with no tax deducted) provided that you have completed Inland Revenue registration form R85. If you have a joint account, where one account holder is a taxpayer and the other is not, we can arrange to pay your interest part net and part gross. Inland Revenue registration forms are available at any of our branches.
Refunds
If you are a non-taxpayer, and have not registered to receive interest without tax deducted, you can claim a repayment from the Inland Revenue. Ask your local Tax Office for details.
Children under 16
Current tax laws allow a child under 16 years of age to earn up to £100 in interest each year from the capital provided by one or each parent. If the interest earned from this source exceeds £100 in one year, it will be treated as the income of the parent and may not be registered for gross interest. For further advice, please contact your local Tax Office.
Charities, Clubs and Societies
If you are investing funds as the treasurer of a CHARITY, CLUB or SOCIETY, your organisation may be eligible to receive interest 'gross' (without deduction of income tax) - your local Tax Office will be able to advise you.
If your organisation is eligible, you can register with us to receive interest with no tax deducted by completing a declaration form. Declaration forms are available at any of our branches.
We pay interest to taxpayers 'net' (after income tax has been deducted at the lower rate, currently 20%).
Basic rate payers
If your interest falls within the basic rate band of 20% you will have no more tax to pay on your interest, as the tax deducted from it at 20% will satisfy the tax due.
Higher rate payers
If you are a higher rate taxpayer you will have to pay the extra tax due on your interest (the difference between tax deducted at 20% and the higher rate of 40%).
Non-taxpayers
If you are a non-taxpayer, we can pay your interest 'gross' (with no tax deducted) provided that you have completed Inland Revenue registration form R85. If you have a joint account, where one account holder is a taxpayer and the other is not, we can arrange to pay your interest part net and part gross. Inland Revenue registration forms are available at any of our branches.
Refunds
If you are a non-taxpayer, and have not registered to receive interest without tax deducted, you can claim a repayment from the Inland Revenue. Ask your local Tax Office for details.
Children under 16
Current tax laws allow a child under 16 years of age to earn up to £100 in interest each year from the capital provided by one or each parent. If the interest earned from this source exceeds £100 in one year, it will be treated as the income of the parent and may not be registered for gross interest. For further advice, please contact your local Tax Office.
Charities, Clubs and Societies
If you are investing funds as the treasurer of a CHARITY, CLUB or SOCIETY, your organisation may be eligible to receive interest 'gross' (without deduction of income tax) - your local Tax Office will be able to advise you.
If your organisation is eligible, you can register with us to receive interest with no tax deducted by completing a declaration form. Declaration forms are available at any of our branches.
