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.
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
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 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.