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Changes to how interest is paid

Your interest will be paid gross from 6 April 2016
For individual customers interest payments on or before 5 April 2016 will be paid net of tax, unless you've registered to receive interest gross. For interest paid on or after 6 April 2016, interest will be paid without tax deducted (gross).

For non-individual customers, interest payments on or before 5 April 2016 will be paid gross, subject to sufficient evidence being provided to justify your eligibility for gross interest. Interest paid on or after 6 April 2016 will be paid gross.

Why?
In the 2015 budget, the government announced that from 6 April 2016 a new tax-free Personal Savings Allowance would be introduced for individuals.

Depending on your individual circumstances, you may need to settle any tax that is due on interest income. You will need to do this directly with HM Revenue & Customs.

For further information take a look at the HMRC website and search for ‘Personal Savings Allowance.

We've changed your terms and conditions to reflect this change
Your General Terms and Conditions explain that prior to 6 April 2016 we would usually pay interest on savings and current accounts after income tax is deducted. To receive interest without tax deducted, you would need to register to receive interest gross.
From 6 April 2016, interest on savings and current accounts is paid without deduction of income tax and that there is no longer a requirement for you to register receive gross interest.

These revised terms and conditions can be viewed below and are available in branch.

General Terms and Conditions for Savings and Current Account customers accounts opened before 13th March 2013 (See Condition 21)

General Terms and Conditions for Savings and Current Account customers accounts opened between 13th March 2013 and 23rd February 2015 (See Condition 22)

General Terms and Conditions for Savings and Current Account customers accounts from 24th February 2015 (See Condition 22)

In addition, your Key Facts Document, where you have one, will have been updated to reflect this change. The revised Key Fact Documents are available online or in branch.

What you need to do
If you feel your account is still right for you, you don’t need to do anything and we’ll assume you accept these changes unless we hear from you before the changes come into effect on 6 April 2016.
You can continue to use your account as you do today, but if you feel your account is no longer right for you or you don’t accept these changes, please call us on 0800 731 6666 (Lines open 8am to 9pm Monday to Friday and 8am to 2pm on Saturdays) or visit your local branch. You can talk to us about alternative options or you can choose to close your account immediately without loss of interest or any additional charges before these changes come into effect. 

 

  • If you receive monthly or annual interest, any interest payments you receive before 6 April 2016 will be paid net, unless you've registered for gross interest or provided sufficient evidence to justify your gross tax status. 

     

    From 6 April 2016, all interest payments received will be paid gross, even if this is for interest accrued before this date.

  • Each individual will have a Personal Savings Allowance.  With Santander if you have a joint account, the interest is considered split equally between the parties to the account.  Your proportion of the interest will count towards your Personal Savings Allowance.

Santander UK plc. Registered Office: 2 Triton Square, Regent's Place, London, NW1 3AN, United Kingdom. Registered Number 2294747. Registered in England and Wales. www.santander.co.uk. Telephone 0800 389 7000. Calls may be recorded or monitored. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our Financial Services Register number is 106054. You can check this on the Financial Services Register by visiting the FCA’s website www.fca.org.uk/register or by contacting the FCA on 0800 111 6768. Santander and the flame logo are registered trademarks.