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Notice of Change to Terms and Conditions - Personal Savings Allowance Changes (PSA) from 6th of April 2016

Notice of Change to Terms and Conditions - Personal Savings Allowance Changes (PSA) from 6th of April 2016

From 6 April 2016 banks and building societies will no longer automatically deduct 20% in tax from the credit interest that you receive.


We are making some changes to the following Terms & Conditions: 

  •    Corporate Accounts Santander UK Platform – applicable to Santander Corporate & Commercial Accounts
  •    Corporate Deposits Terms and Conditions – applicable to closed to sale Santander Corporate & Commercial Deposit Accounts 

We are making these changes as result of legislative changes required by HM Revenue & Customs (HMRC) relating to Personal Savings Allowance (PSA).

Personal Savings Allowance

From 6 April 2016 banks and building societies will no longer automatically deduct 20% in tax from the credit interest that you receive.

For individual customers interest payments on or before 5 April 2016 will be paid net of tax, unless you've registered to receive interest gross. For interest paid on or after 6 April 2016, interest will be paid without tax deducted (gross).  If the total amount of interest you receive in any tax year exceeds any Personal Savings Allowance to which you’re entitled, you may have to pay tax at the applicable rate. This would need to be paid directly to HMRC. For more information, please visit gov.uk and search for 'Personal Savings Allowance'. 

For non-individual customers, interest payments on or before 5 April 2016 will be paid gross, subject to sufficient evidence being provided to justify your eligibility for gross interest. Interest paid on or after 6 April 2016 will be paid gross.

What’s happening

The new Personal Savings Allowance will mean that most individuals will no longer need to pay tax on their credit interest.  Depending on your individual circumstances, you may need to settle tax that is due on interest income. You will need to do this directly with HMRC. For more information, please visit gov.uk and search for 'Personal Savings Allowance'.

If you need to complete a self-assessment tax return then information relating to any tax paid on your credit interest can be found on your account statement.  

The changes will be effective from 6 April 2016 and the conditions that we’re changing are as follows:

1.    Condition 18.1 in the Corporate Accounts Santander UK Platform Terms and Conditions
2.    Condition 2.21 in the Corporate Deposits Terms and Conditions

Please note these changes are applicable to UK only.

The new condition

For Accounts opened in the UK

For individual customers interest payments on or before 5 April 2016 will be paid net of tax, unless you've registered to receive interest gross. For interest paid on or after 6 April 2016, interest will be paid without tax deducted (gross). If the total amount of interest you receive in any tax year exceeds any Personal Savings Allowance to which you’re entitled, you may have to pay tax at the applicable rate. This would need to be paid directly to HMRC. For more information, please visit gov.uk and search for 'Personal Savings Allowance'. 

For non-individual customers, interest payments on or before 5 April 2016 will be paid gross, subject to sufficient evidence being provided to justify your eligibility for gross interest. Interest paid on or after 6 April 2016 will be paid gross.

For Accounts opened in Jersey

For corporate customers whose accounts have been opened in Jersey, interest will be paid gross. It is the account holders’ responsibility to ensure that they seek appropriate tax advice regarding the disclosure of any accounts to the relevant tax authorities.

 Information

For more information on how this may impact you, please speak to your tax advisor or visit gov.uk and search for ‘Personal Savings Allowance’.

You can also visit the Santander educational page which provides further information on Personal Savings Allowance. You can access the page by clicking here.

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