Banks and building societies have to take tax off the interest on your savings before paying it to you. You lose 20% of your interest through this.
If you don't pay tax on your income because it is less than your tax allowances, you can keep all your interest and can stop the bank or building society deducting tax. If you only pay tax at 10%, you may also be able to reduce the tax paid on interest.
Claim a tax refund! You can claim back for up to 6 years if you paid too much tax on interest. Stop future deductions by registering for "gross" interest.
Claim! - For more information ring the Income Tax Helpline on 0845 302 14777. You may also be eligible for free tax advice from Tax help for older people (TOP).
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Information Provider:
Manchester Advice
Date Written:
September 2005
Date Reviewed:
6 October 2008
This information is for guidance only and is not an authoritative statement on the law. Please read our Terms and Conditions.
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