Tax refund for a bond

Jackthedog

I have discovered my better half has been paid the interest on a bond for about 3 years net of tax which is an error as she is not actually a taxpayer.

Can anyone point us in the correct direction to remedy this as we are a little muddled on how this should be done?

xylophone

https://www.gov.uk/apply-tax-free-interest-on-savings

If you already paid tax on your savings income

You can reclaim tax paid on your savings interest if it was below your allowance. You must reclaim your tax within 4 years of the end of the relevant tax year.

Fill in form R40 and send it to HMRC. It normally takes 6 weeks to get the tax back.

Dazed_and_confused

And you can ignore the bit about being "below your allowance".

She could have total income, including the interest, above any "allowance" and still be eligible for a refund.

She is unlikely to be able to benefit from the Personal Savings Allowance rate band but the savings starter rate band will be available so any interest above the Personal Allowance will still end up being taxed at 0%.

Jackthedog

Many thanks

[Deleted User]

Jackthedog wrote: »

I have discovered my better half has been paid the interest on a bond for about 3 years net of tax which is an error as she is not actually a taxpayer.

Can anyone point us in the correct direction to remedy this as we are a little muddled on how this should be done?

Are you sure? Since April 2016, all banks have paid gross interest.