Having bank interest paid gross
If your taxable income is less than £5,225 per year, you should arrange for your bank, building society, or local authority to pay your account interest without tax. Note that interest from a unit trust or open-ended investment company is taxed regardless of your income.
To register for gross interest, ask your account provider for a R85 form or download a copy from the HM Revenue & Customs website. You can register more than one account with the same bank, building society or local authority, on a single registration form. If you open a new account, and you are still entitled to gross interest, you must complete a separate form R85 for the new account. Give the completed form(s) back to your bank, building society or local authority to start receiving gross interest payments (tax will not be taken off).
If you have a joint account, e.g. in the name of you and your spouse, you can register if:
- both persons register an R85 form, or
- the bank, building society or local authority allows both net and gross account holders on the same account.
For more information, see leaflet IR110, contact your local HM Revenue & Customs enquiry centre or call the registration helpline on 01514 726 080 (calls are charged at local rate).
This page was last reviewed on 16 April 2007. The information may not reflect changes in legislation made after this date.
This is only a guide to your tax position and should not be relied on in place of professional accounting or tax advice. Any calculated figures are illustrative and are based on the data you provided.
