Tax Deduction Scheme for Interest (TDSI) guidance notes

These notes provide general guidance for Financial Institutions on how to operate the scheme and deduct basic rate of tax from appropriate interest payments.

This publication was withdrawn on

This content is now obsolete from 6 April 2016.


Tax Deduction Scheme for Interest

This file may not be suitable for users of assistive technology. Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email Please tell us what format you need. It will help us if you say what assistive technology you use.


Since 6 April 1991 tax has been deducted from deposit interest paid by deposit-takers and building societies. From 6 April 2008 tax is deducted at the basic rate of tax. This scheme is known as the Tax Deduction Scheme for Interest.

Published 16 October 2012