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Permanent Interest Bearing Shares (PIBS)

PIBS Frequently Asked Questions

PIBS are Permanent Interest Bearing Shares. They are shares issued by building societies which pay a fixed rate of interest and provide membership. For the building societies concerned, they are a way of raising money without demutualising. The risk to the investor is different to that of a normal savings account. They are not suitable for all savers and should not be acquired without receiving financial advice. For example, they are not covered by the Financial Services Compensation Scheme.

In March 1992 Skipton issued £25 million of PIBS, comprising 25,000 individual shares and each one had a nominal value of £1,000. On 9 December 2025 the Society purchased and redeemed all of the £25 million 12.875% PIBS. For more information please see 31.10.25 - £25 million 12.875 PIBS Tender Offer and Consent Solicitation (the Offers) [PDF] and 02.12.2025 - £25 million 12.875% PIBS Results Announcement [PDF].

In April 2000, the Scarborough Building Society issued £15 million of PIBS, comprising 6,000 individual shares and each one had a nominal value of £2,500. These were assumed by Skipton in 2009 following the merger with Scarborough Building Society.

The 1992 PIBS paid a coupon rate of 12.875% per annum. These were fully redeemed on 9 December 2025.

The 2000 PIBS pays a coupon rate of 8.50% per annum.

Interest is paid half yearly, in arrears, on the following dates for the 8.50% PIBS:

  • 26 October
  • 26 April

Specific terms and conditions relate to payments, which are not guaranteed. Please refer to the PIBS prospectus which can be found at the top of this page.

Interest is currently paid without the deduction of basic rate tax, which aligns with the current rules and requirements of HM Revenue & Customs. Any interest earned on the PIBS should be declared to HM Revenue & Customs by the PIBS holders.

Skipton's 8.50% PIBS are not redeemable at a specified date in the future and are perpetual.

Skipton's 12.875 PIBS were purchased and redeemed in full on 9 December 2025. Please see the question titled "How can I find out more about the Tender Offer and Consent Solicitation (the Offers) in respect of the £25 million 12.875% PIBS?" for further information.

At the time that each tranche of PIBS was issued, a document called an Offering Circular was produced. Each Offering Circular contained all of the contractual terms of the PIBS along with certain financial and background information. Each Offering Circular contained information which was up-to-date at the time of its issue.

Skipton publishes Annual Report & Accounts ("AR&A") and Half Year Results, which provide more up-to-date financial information than that contained within the Offering Circular. Therefore the Annual Report & Accounts and Half Year Results should also be considered alongside the Offering Circular information in order to obtain Skipton’s most up-to-date financial position.

Copies of the Offering Circulars are provided below:

Copies of the Annual Report & Accounts and Half Year Results may be downloaded on our Financial Results page.

No amendments have been made to the Offering Circular or terms of the PIBS, in relation to the 8.50% PIBS issued in 2000.

On 2 December 2025, holders of the 12.875% PIBS voted at a meeting to pass a resolution in relation to the 12.875% PIBS which amended the Special Conditions of those PIBS, and the 12.875% PIBS were subsequently purchased and redeemed in full on 9 December 2025 in line with the amended Special Conditions. The amended Special Conditions can be reviewed in £25m 12.875% PIBS Amended Special Conditions [PDF].

The Register of Shareholders is maintained by MUFG Corporate Markets on behalf of the Skipton. If you have any queries surrounding your certificate (for example, change of name or address), please contact: shareholderenquiries@cm.mpms.mufg.com.

MUFG Corporate Markets
Central Square
29 Wellington Street
Leeds
LS1 4DL

Please contact the Registrar: Shareholder Helpline: 0371 664 0300

MUFG Corporate Markets
Central Square
29 Wellington Street
Leeds
LS1 4DL

Skipton does not maintain a record of the market prices for its PIBS. If you would like to determine market prices, you would need to contact an appropriately selected professional adviser. Please note the value of PIBS can rise and fall.

In order to buy PIBS, you would need to transact through an appropriate professional adviser, such as a stockbroker.

To sell PIBS you need to talk to a professional adviser such as a stockbroker.

No. Skipton can provide factual information relating to the PIBS but it is not able to give any form of investment or tax advice to individuals in relation to the PIBS. To obtain advice, individuals should contact an appropriately qualified financial adviser.

If your query has not been answered by the points above, please contact your financial adviser or your stockbroker.

If you would like to contact Skipton’s Treasury team by email: investor.relations@skipton.co.uk. We aim to reply to all questions within two business days and would welcome contact from current investors.