Halifax reward account monthly reward

ollie31770

As there is no longer tax being taken off savings, will the reward amount go up from £5 to £6.25 (the stated gross amount)? There's no hint of this on the website.

zolablue25

It is not interest therefore the tax will stil be withheld. If you do a search on the forums for "Halifax Reward" or similar you will find numerous threads all asking the same question.

polymaff

zolablue25 wrote: »

It is not interest therefore the tax will stil be withheld. If you do a search on the forums for "Halifax Reward" or similar you will find numerous threads all asking the same question.

Same goes for the nett payment made by Barclays Blue Reward.

I'd bet that the treatment of both Rewards is based upon this HMRC document

http://www.hmrc.gov.uk/manuals/saimmanual/SAIM8020.htm

For the Halifax Reward, it is entirely "pure profit". For the Blue Reward, the "Pure Profit" is the reward minus the account fee.