If you need specific advice regarding your tax position, please contact your tax adviser or your local tax office who will be able to provide very informative reference material on most areas of taxation. Alternatively, you can transfer to the HM Revenue and Customs by visitng their website www.hmrc.gov.uk
However, below is a list of general topics you might find useful:
R85 - Registration form for interest without deduction of tax
If you are a non-tax payer, you are likely to be eligible to receive your interest gross without any deduction of tax. In this instance an R85 form should be completed, signed and returned to your local branch or the Principal Office. A separate form is required in respect of each account you hold and in the case of joint accounts, a separate form is also required for each account holder. An R85 must be completed if the account is held in a child's name and he/she is a non-tax payer. If the child is under 16, the form must be completed and signed by the parent or guardian. At the age of 16, a new R85 form must be completed, signed by the child (account holder) and returned to your local branch or the Principal Office. Request a copy of the R85 form
The R85 form is applicable for U.K. residents who are eligible to receive interest paid on a gross basis. Otherwise, Building Societies are required to deduct tax at a rate of 20% (from 6th April 1996) from interest paid or credited to investors.
You may already have registered an R85 form but have found your tax status has changed and you now pay tax. In this case, you must cancel your registration and tax will be calculated from the date interest was last paid to you.
If you are a higher rate tax payer, the HM Revenue and Customs will collect the difference between the 20% deducted and the higher rate of taxation, directly from you.
If you are unsure of your tax status, please contact your local tax office and they will advise you. Alternatively, you can visit their website www.hmrc.gov.uk.
Sections 975 - Certificate of deduction of income tax
This shows the gross interest paid and tax deducted on an investment account for a specific tax year. It may be required by the HM Revenue and Customs if:
- You need to complete an income tax return,
- You are NOT registered as a non-tax payer,
- Your tax deducted exceeds your total tax liability and the certificate is required in order to claim any tax refund. The HM Revenue and Customs booklet IR110 "A guide for people with savings" explains how you can work out whether you can claim tax back and, if so, how to claim. Alternatively, you can visit their website www.hmrc.gov.uk.
If you would like us to send you a Section 975 Certificate for this year, click here. For other tax years, please phone the Customer Services Helpline on 0845 850 17 22*. If you require a duplicate copy of your certificate, a fee of £10 will be levied. Further details on this fee, can be found here. You will need to forward your request and cheque to:
Investment Administration
Skipton Building Society
Principal Office
The Bailey
Skipton
N Yorkshire
BD23 1DN
Transferring your "tax-free" accounts
Transferring your Cash ISA to another provider
PLEASE NOTE: WE CANNOT OFFER PARTIAL TRANSFERS OF AN ISA EITHER TO THE SOCIETY OR TO ANOTHER PROVIDER.
Closure of "tax free" accounts
The withdrawal conditions for tax exempt accounts are set out in the original terms and conditions that are provided when the account is opened. However, although we do not recommend it, should the need arise it is possible to prematurely close your "tax-free" investment account and this information is designed to help you. Please click to select information about a Cash ISA.
Closure of your Cash ISA
Under the terms of our Cash ISA, closure may take place within 30 days of opening without any loss of tax-free status or affecting contribution limits during that tax year. Request information on our ISAs.
If your Cash ISA is closed after 30 days from the date of opening, the tax free status of the interest is not affected, but it should be noted that the capital amount used in that contribution period cannot be replaced in the same tax year.
(For example: if you invest £3,600 in the second year of your ISA and then withdraw £1,000 you cannot subsequently invest a further £1,000 to replace the withdrawn amount, in the same tax year). Closure taking place after the initial 30 day period is subject to 30 days' notice. Existing customers who have added to their investment the following year are able to withdraw from their account, subject to a £1 minimum withdrawal and a £50 minimum balance remaining.
Please note: we cannot offer partial transfers of an ISA either to the Society or to another provider.
How your interest is calculated
Interest is calculated from the day we receive cash (where permitted by account terms and conditions), and on the third working day from and including the day we receive a cheque (if this is a working day). Interest is then accrued until, but not including, the day of withdrawal, on a daily basis. This is either credited to your account balance, paid to another suitable Skipton account, or sent via the BACS (Banks Automated Clearing System) to your bank or building society on the date specified in your product terms and conditions.
Interest rate changes will be advertised in two or more daily newspapers, currently The Daily Telegraph and The Express and will be displayed within our branch offices. You are also welcome to contact Customer Service or keep yourself up to date using our website. Current rate information. Under the terms and conditions of specific accounts, Skipton Direct customers will be notified by post of any changes in interest rate. Request information on Skipton Direct.
Please note, the manner in which interest is paid to you will vary from account to account. Please read your terms and conditions for specific information or contact the Customer Services Helpline on 0845 850 17 22*.