Savings

Personal Savings Allowance

A Personal Savings Allowance was introduced by the Government on 6 April 2016. The first £1,000 of savings interest earned by basic rate tax payers and the first £500 for higher rate tax payers is now free from income tax.

We no longer deduct tax from interest

We now pay gross interest on all our savings accounts. This means interest is paid without tax taken off. Your liability to pay tax depends on your personal circumstances and may change. You'll need to make arrangements to pay any tax you may owe directly with HMRC.

Changes to our Terms & Conditions

The following changes were made to our savings Terms & Conditions on 6 April 2016:

Account Name

Previous Condition (until 5 April 2016)

New Condition (From 6 April 2016)

Club & Association Deposit Account

5.7 Interest will be paid gross without deduction of base rate tax subject to confirmation of tax status as evidenced by the following:

a) Deed of Constitution

b) Latest annual accounts signed by auditor

c) Other – please contact our customer service team

5.7 Interest will be paid gross and you will be responsible for paying any tax due to HMRC.

Charity Deposit Account

5.6 Interest is normally payable net of basic rate tax (currently 20%).

Interest may be paid gross without deduction of basic rate tax subject to confirmation of tax status as evidenced by the following documentation or as otherwise agreed with our customer service team:

  1. Charity – Confirmation of the Charity Registration Numbver
  2. Clubs/Associations – Latest annual accounts signed by auditors or Deed of constitution
  3. Company – Certificate of Incorporation
  4. Pension Fund – HM Revenue & Customs scheme reference number
  5. Individual – HM Revenue & Customs appropriate form
  6. Others – please contact our customer service team.

Note: Interest on deposits of pooled client funds is paid gross. It is your responsibility to declare interest received.

5.6 Interest will be paid gross and you will be responsible for paying any tax due to HMRC.

Pension Fund Deposit Account 2

5.6 Interest is payable gross. Evidence of the HM Revenue & Customs scheme number for the pension fund is required.

5.7 For business accounts, interest may be paid gross without deduction of basic rate tax subject to confirmation of tax status as evidenced by the following documentation or as otherwise agreed with our customer service team:

a) Company – Certificate of Incorporation

b) Pension Fund – Evidence of HMRC scheme reference number

c) Association – Latests annual accounts signed by auditor or Deed of Constitution

d) Others – please contact our customer service team

5.6 Interest is payable gross.

5.7 Interest will be paid gross and you will be responsible for paying any tax due to HMRC.

Instant Saver 2 Account

5.6 Interest is normally payable net of lower rate tax (currently 20%) but may be paid gross if you provide us with the appropriately completed HM Revenue & Customs form.

5.6 Interest will be paid gross and you will be responsible for paying any tax due to HMRC.

Internet Saver Account

5.6 Interest is normally payable net of lower rate tax (currently 20%) but may be paid gross if you provide us with the appropriately completed HM Revenue & Customs form.

5.6 Interest will be paid gross and you will be responsible for paying any tax due to HMRC.

Direct Transfer Account 2

5.6 Interest is normally payable net of lower rate tax (currently 20%) but may be paid gross if you provide us with the appropriately completed HM Revenue & Customs form. Tax treatment depends on individual circumstances and may change.

5.6 Interest will be paid gross and you will be responsible for paying any tax due to HMRC.

1 Year Non Personal Fixed Term Deposit Account

5.6 Interest is normally payable net of basic rate tax (currently 20%).

Interest may be paid gross without deduction of basic rate tax subject to confirmation of tax status as evidenced by the following documentation or as otherwise agreed with our customer service team:

  1. Charity – Confirmation of the Charity Registration Numbver
  2. Clubs/Associations – Latest annual accounts signed by auditors or Deed of constitution
  3. Company – Certificate of Incorporation
  4. Pension Fund – HM Revenue & Customs scheme reference number
  5. Individual – HM Revenue & Customs appropriate form
  6. Others – please contact our customer service team.

Note: Interest on deposits of pooled client funds is paid gross. It is your responsibility to declare interest received.

5.6 Interest will be paid gross and you will be responsible for paying any tax due to HMRC.

3 Year Non Personal Fixed Term Deposit Account

5.7 Interest will be paid gross without deduction of base rate tax subject to confirmation of tax status as evidenced by the following:

a) Confirmation of the Charity Registration number

b) A letter on headed paper from the Charity Commission addressed to the Charity or

c) Other – please contact our customer service team.

5.7 Interest will be paid gross and you will be responsible for paying any tax due to HMRC.

3 Year Fixed Term Deposit Account

5.6 Interest is normally payable net of lower rate tax (currently 20%) but may be paid gross if you provide us with the appropriately completed HM Revenue & Customs form.

5.6 Interest will be paid gross and you will be responsible for paying any tax due to HMRC.

3 Year Fixed Term Pension Fund Deposit Account

5.6 Interest is payable gross. Evidence of the HM Revenue & Customs scheme number for the pension fund is required.

5.7 For business accounts, interest may be paid gross without deduction of basic rate tax subject to confirmation of tax status as evidenced by the following documentation or as otherwise agreed with our customer service team:

a) Company – Certificate of Incorporation

b) Pension Fund – Evidence of HMRC scheme reference number

c) Association – Latests annual accounts signed by auditor or Deed of Constitution

d) Others – please contact our customer service team

5.6 Interest is payable gross.

5.7 Interest will be paid gross and you will be responsible for paying any tax due to HMRC.

If you have any questions, or your account is not listed above, you can call our customer service team on 0345 845 0829.

Definitions

Gross rate is the contractual rate of interest payable before the deduction of income tax at the rate specified by law.

Net rate is the rate of interest which would be payable after allowing for the deduction of income tax at the rate specified by law (currently 20%).

For more information about the Personal Savings Allowance please call HMRC on
0300 200 3300 or visit www.hmrc.gov.uk