Are you eligible for the ‘10% Tax Rate’?

13 February 2014

Many savers may be paying more tax on their savings than they need to. Savings customers whose annual taxable income (excluding savings interest) falls below a certain threshold are eligible to claim the 10% tax rate.

The eligible thresholds are:

• Below £10,815 for Under 65’s
• Below £13,210 for Over 65’s
• Below £13,370 for Over 75’s

If you fall into any of these threshold categories, then the interest on your savings will still have been taxed at the standard 20% rate, so you will need to make a claim to regain the tax owing to you.

How to Claim

Any claims for the 10% tax rate must be made directly to HM Revenue & Customs (HMRC), using an R40 Form. If eligible, you are required to make your own claims to HMRC; banks and building societies are not permitted to make a claim on your behalf. Claims can be backdated for up to four years meaning you can claim back overpaid tax for the 2008/09 tax year provided you apply before April 5th 2013.

How the Society can Help Customers

Click here for more information on 'Taxation' including how to claim tax back at the 10% tax rate. You will also find a link to HMRC’s R40 Form plus downloadable versions of useful taxation information from the Building Societies Association.

The Building Societies Association has also produced an up to date consumer factsheet regarding paying tax on savings with building societies, with particular focus on customers who are eligible for the 10% tax rate.

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