ISA Accounts all cash ISA accounts pay interest gross (tax free).
Important changes to your personal savings allowance.
From 6 April 2016, taxpayers have a new Personal Savings Allowance. This means that up to £1,000 of income from savings (e.g. any interest earned) is tax-free for basic taxpayers, and up to £500 of savings income is tax-free for higher rate taxpayers. Currently, Shawbrook Bank is required to take basic rate tax from their customers savings interest. From 6 April 2016, the HMRC instructed we stop doing this because the vast majority of people will have no tax to pay on this income. There is no action for most customers to take. Those with savings income below their new Personal Savings Allowance will have no tax to pay. Where possible, those with savings interest above their Personal Savings Allowance will have any tax they have to pay collected automatically by HMRC, through a change to their tax code - based on information provided by banks and building societies. Those who currently complete a self-assessment tax return should continue to do so.
To find further Questions and Answers relating to this change please click here.
For further information about these changes, go to www.gov.uk and search for Personal Savings Allowance.