Problem with B&M re R85 status.

harz99

I am hoping some of our experts may help with a stalemate situation my wife is in.

Back in 2008 she had a BM savings account registered for R85 gross interest with HMRC. Her circumstances changed and HMRC told the BM to deregister the account from gross interest, which they did and placed a note "D" against the account.

The funds were subsquently reinvested but kept the same account number and note "D" which BM claims is due to HMRC regulations.

Her circumstances have changed again, and she is now eligible to receive gross interest again.

On contacting BM she has been told in writing "In order to register your account for gross interest we need HMRC to write to us to inform us that you are now eligible for gross interest. Without this information from HMRC we cannot register your account for gross interest".

The trouble is several phone calls to the Inland Revenue Enquiries line, Self Assesment Helpline and the R85 helpline have all met with the same response - we don't write letters of this sort. In fact the R85 people are saying the BM should accept registration as peoples circumstances change, and they will decide whether to refuse it or not.

So stalemate; who is correct and where do we go from here? Your views please.

xylophone

So stalemate; who is correct and where do we go from here? Your views please.

I would write to HMRC and take their written response to BM.

Dazed_and_confused

I think the building society(?) is correct.

Have a look at sections 3.52 and 3.53 in the attached guidance for financial institutions.

Might be worth digging out the letter you refer to from 2008 and contact the specialists in HMRC?

http://www.hmrc.gov.uk/taxon/guidance-notes.pdf

Dazed_and_confused

It might be worth posting on Cutting Tax board as well, I think there is someone who used to work for this bit of HMRC who posts on there.

Voyager2002

The simplest solution would be to close that account and move to a different building society.

harz99

Dazed_and_confused wrote: »

I think the building society(?) is correct.

Have a look at sections 3.52 and 3.53 in the attached guidance for financial institutions.

Might be worth digging out the letter you refer to from 2008 and contact the specialists in HMRC?

http://www.hmrc.gov.uk/taxon/guidance-notes.pdf

Dazed; thanks very much for that link. It is obvious BM are correct. Digging through the guidance I managed to find who to write to (SASS - who knows what that stands for) and their address.

Shame that BM couldn't quote the guidance notes and section reference, and/or more importantly, tell us who/where to write to.

Would have saved a whole lot of time and effort for both them and us. Instead of that they have lost any further business from us.

harz99

Voyager2002 wrote: »

The simplest solution would be to close that account and move to a different building society.

Except that the a/c is a fixed rate/term and would incur a penalty to close and a reduction in interest at todays rates.

alanq

BM is not a building society. It is part of HBOS which in turn is part of the Lloyds banking group.