Until 5th April 2015, Income Tax at 20% was deducted at source on most savings, by banks and building societies. Only specific savings such as Individual Savings Accounts (ISAs) or National Savings & Investments (NS&I) products qualified as tax free savings.
Effective this tax year, this has changed and you may be able to get your savings interest tax-free. To qualify for tax free savings interest, your income for the tax year 2015-16 should be less than £15,600. If this is applicable, contact the bank or building society to tell them you’re eligible. They’ll register you for tax-free savings.
If your total income for the year is less than £15,600 excluding savings interest, you could still get a refund. To claim this refund, work out your final figures for the 2015 -2016 tax year, fill
in form R40 and send it to HM Revenue and Customs (HMRC).
Total income for this purpose, include money you earn from employment, profits from self employment, some state benefits, rental income, interest on savings, trust income and dividends
Announcing the above change during his Commons Budget speech, Chancellor George Osborne said: "People have already paid tax once on their money when they earn it. They shouldn't have to pay tax a second time when they save it."
Effective this tax year, this has changed and you may be able to get your savings interest tax-free. To qualify for tax free savings interest, your income for the tax year 2015-16 should be less than £15,600. If this is applicable, contact the bank or building society to tell them you’re eligible. They’ll register you for tax-free savings.
If your total income for the year is less than £15,600 excluding savings interest, you could still get a refund. To claim this refund, work out your final figures for the 2015 -2016 tax year, fill
in form R40 and send it to HM Revenue and Customs (HMRC).
Total income for this purpose, include money you earn from employment, profits from self employment, some state benefits, rental income, interest on savings, trust income and dividends
Announcing the above change during his Commons Budget speech, Chancellor George Osborne said: "People have already paid tax once on their money when they earn it. They shouldn't have to pay tax a second time when they save it."
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