Interest paid prior to 2016/17 to non-taxpayers resident in the UK

A4.415 General

This article discusses the provisions for deduction of tax as they applied before 2016/17. For the current position, see A4.402

Building societies and deposit-takers are authorised to pay interest without deduction of tax where the person beneficially entitled to the payment is an individual resident in the UK in respect of whom they have received a certificate that the individual is unlikely to be liable to UK income tax on savings income. Prior to 6 April 2015, the wording of the certificate merely referred to 'non-liability to tax'. The change enables savers to register with their bank and building society to receive interest payments without tax deducted if all of their savings income is eligible for the starting rate, thus removing the need to make a reclaim to HMRC in relation to tax amounts deducted from interest payments. A non-resident individual must

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