Consumers
Taxation of Building Society Interest
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Contact: Simon Rex Date: 16 Aug 2011 |
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If you save or invest money, you'll generally have to pay tax on the interest or income you receive. Savings interest normally has tax taken off at 20 per cent before you receive it. If you're a higher rate (40 per cent) or additional rate (50 per cent) taxpayer, you'll owe tax on the difference. If you have a low income you may be able to claim tax back. However there are some savings and investments that can give you a tax-free return.
The links below provide details of how tax is payable on savings and investments and what products offer tax-free returns.
BSA leaflet - Taxation of Building Society Interest (for the tax year 2011-12)
DirectGov.com guidance on tax on bank and building society accounts
HM Revenue and Customs - guidance on tax efficient savings and investments
