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Interest to be paid gross

Video: government changes explained

We've put together a short video to help you understand the changes to interest on non-ISA savings and current accounts.

Watch our video

Since 6 April 2016 interest has been paid gross

Up to and including 5 April 2016 banks and building societies automatically deducted income tax from the interest you received on non-ISA savings and current accounts, unless you were registered for gross interest.

Since 6 April 2016 banks and building societies have been paying interest gross, without income tax deducted.

Why?
From 6 April 2016 a tax-free Personal Savings Allowance was introduced by the government

  • For basic rate tax payers - you can earn up to £1000 of interest tax free, per tax year
     
  • For higher rate tax payers - you can earn up to £500 of interest tax free, per tax year
     
  • Additional rate tax payers don't qualify for the Personal Savings Allowance

How do I know if I need to pay tax?
If you owe tax on the interest that you receive you'll need to settle this directly with HM Revenue & Customs (HMRC). 

For further information on the Personal Savings Allowance and whether you need to pay tax on the interest that you receive take a look at the HMRC website and search for ‘Personal Savings Allowance’.

If you need to complete a self-assessment tax return
Your Account Summary provides all of the interest information you need to complete self-assessment for your Santander personal savings and current accounts, in one place. It will automatically be available in Online Banking from May for the previous tax year. To find your Account Summary:

  • Go to the 'Account Services' tab then
     
  • Go to e-Documents
     
  • Search ‘Account Summary’ using the advanced search facility within e-Documents 

You can also get paper copies from your local branch or by telephoning 0800 587 3344.

Frequently asked questions

  • At this time we have decided not to offer the new additional flexible features on ISAs. Whilst we recognise that these features will benefit some savers, we have decided to keep our ISAs working in the same way they do today, and instead to prioritise other products and services which we feel will provide more value to our customers.

     

    It is important to us that we develop and offer products that meet the needs of our customers and we will continue to review our products regularly.

  • From 6 April 2016, if your total subscription has been above £0 at any point in the tax year either with a flexible or non-flexible ISA provider, you’ll be treated as having subscribed to that ISA in the tax year, even if your total subscription is now £0. This means you can’t subscribe to another ISA of that type in the tax year without first transferring your original ISA, even if there is nothing left in it.

  • It is still your responsibility to keep track of how much of your ISA allowance you have used.
    You can ask your ISA provider(s) to confirm what your remaining ISA allowance is with them at any time. But remember your ISA provider(s) won’t know about any money you have paid into ISAs elsewhere.

  • No, in line with HM Revenue & Customs regulations, you can only pay into one cash ISA each tax year.

     

    For cash ISAs with Santander you can only subscribe to one product each tax year. e.g. a fixed rate cash ISA or a variable rate cash ISA

     

    Some ISA providers offer a cash ISA portfolio. The portfolio is the cash ISA and it allows you to open and subscribe to multiple cash ISA products in the same tax year. e.g. a fixed rate cash ISA product and a variable rate cash ISA product.
     

  • Can't find what you are looking for? More help can be found at on the Savings FAQs page.

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