Tax on savings interest

Previous tax years

If you’re self-employed, or have savings interest from tax years starting before 6 April 2016, you’ll have to report it in a Self Assessment tax return.

Declare interest you got from 6 April 2016 or later

Add up all your bank and building society savings and give a total amount for the interest you received. Use simple assessment to declare and pay the tax you owe on the interest.

If you have a joint account, divide the total amount of interest by the number of account holders. For example, if you have a joint account with one other person, declare half the total amount as yours.

Declare interest you got before 6 April 2016

Interest you earned before 5 April 2016 may have been taxed at source. This means tax was deducted from the interest before you got it.

To declare it, add up all your bank and building society savings and give a total amount for the interest you received after tax was deducted (net interest).

Your bank or building society can send you a ‘Certificate of Tax Deducted’ or a statement after the end of each tax year (5 April) which will tell you your net interest.

If you have a joint account, divide the total amount of interest by the number of account holders. For example, if you have a joint account with one other person, declare half the total amount as yours.

Reclaim tax from previous years

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

How to claim

Fill in form R40 and send it to HM Revenue and Customs (HMRC). It normally takes 6 weeks to get the tax back.

Get help

Contact the savings helpline if you need help and advice.