Tax free interest

Joop_2

Hi, from 6 April 2015 you can get your interest paid gross if your income for the tax year is £15,600 or less.
Does anyone know if this just applies to "savings accounts" or to all interest earned from any account ,such as current accounts etc.?

Joop

uknick

All interest bearing accounts, that are subject to tax.

Eco_Miser

Any account where you could have got gross interest last year if your income was under £10,000. So not the Halifax Reward, or those NS&I accounts where tax is deducted at source - you have to reclaim the tax on those later with an R40 or self-assessment.

Joop_2

Hi, uknick and Eco Miser, thanks for you replies that is how I thought but Lloyds bank do not. On contacting them the lady said she had never heard of it and went away to ask her manager. On returning to me she said it only applied to "savings accounts" and therefore could not register my "current account" .

Motormad

I went into my local Clydesdale branch to register for gross interest and the lady said that current accounts didn't pay interest.i had to point out that I had recently opened their current account direct to get the switch bonus and the 2% interest on £3000.It doesn't inspire much confidence in their knowledge and ability to run your finances.

sheramber

I have registered my TSB current account to have interest paid gross.

ManAtHome

Joop wrote: »

but Lloyds bank do not....

They do according to their T&Cs http://www.lloydsbank.com/assets/media/pdfs/personal_banking_terms_and_conditions.pdf (page 16, section 9.4).

I don't have a Lloyds account, so not 'speaking' from experience...

Vortigern

Joop wrote: »

Hi, uknick and Eco Miser, thanks for you replies that is how I thought but Lloyds bank do not. On contacting them the lady said she had never heard of it and went away to ask her manager. On returning to me she said it only applied to "savings accounts" and therefore could not register my "current account" .

Absolute rubbish from those ill-informed bank employees. I left an R85 form at my local Lloyds branch (for a Club Lloyds current account) and have subsequently received an acknowledgment confirming that my interest will be paid gross.

Try a different branch.

Joop_2

Thanks for all your replies, T&C's, and Vortigen who as actually registered with Lloyds with an R85 form, I shall now do the same.
This was just the info I wanted to read.
Many thanks to you all.

Joop

Eco_Miser

Joop wrote: »

Hi, uknick and Eco Miser, thanks for you replies that is how I thought but Lloyds bank do not. On contacting them the lady said she had never heard of it and went away to ask her manager. On returning to me she said it only applied to "savings accounts" and therefore could not register my "current account" .

A little trick to deal with such people: ask them to put it in writing and sign it that they accept the responsibility of rejecting your R85 - or accept the R85 and process it anyway.
I've never had to do this at a bank, but it worked at the DSS.