How do I claim back tax on savings income?
On this page, we explain how to claim a refund of tax paid on savings income. This information is for people who do not have to fill in a tax return.
If you normally complete a tax return, see our page How do I claim back tax if I complete a tax return?
⚠️ Note that refunds of tax deducted at source on savings income, typically only arose for tax years up to and including 2015/16 (which are now closed for claiming refunds). However, occasionally you may still have tax deducted at source on certain types of savings or investment income or maturities.
What are the rules on tax deducted at source on interest?
Since 6 April 2016, most people have no tax to pay on interest they receive from a bank or building society account due to the ‘personal savings allowance’ (PSA) of £1,000 (or £500 for higher rate taxpayers).
Banks and building societies must therefore pay your interest gross. This means that they do not deduct any income tax from it before you get it. This gives the right result for the vast majority of people, that is, there is no tax due or repayable on their savings income.
The £1,000 and £500 figures shown above mean the interest on all of your accounts – so you have to add up the total interest you receive to work out whether it is within your allowance.
Purchased life annuity income continues to be paid net of tax (after tax has been deducted). There is more information on purchased life annuities in our pensioners section.
Certain other types of savings income continue to have tax deducted at source, for example, interest paid on lost/traced investment policies or compensation, such as in the case of mis-selling of PPI. In these instances, you may be able to claim this tax back.
There is more information about savings income and tax generally on our page savings and tax.
How do I claim back overpaid tax on savings income?
Any tax taken off savings income will be at the rate of 20%. You may need to claim a repayment of tax, if any of your savings income should only have been subject to the starting rate of tax for savings (0% in 2023/24) or should not have been taxed at all, for example, because of the availability of the personal savings allowance.
You can complete the R40 form online or download and print the forms from GOV.UK.
If you want to complete the form by hand but are unable to print the form off yourself (or with help from friends, a local library, etc.) then you will have to phone HMRC to request that they send you a copy. The phone number to use is: 0300 200 3300.
If you have any trouble in getting a form R40 sent to you by HMRC, please let us know - although HMRC are having a big push towards 'digital', they have assured us that a paper form should still be available, if requested.
If you fill in a paper copy, when it is complete, send it to the address shown on GOV.UK.
What information do I need to give HMRC to claim a repayment of tax?
Put your National Insurance number on the R40 form and in any accompanying letter.
You need to tell HMRC the amount of net interest that you received, the amount of tax that was withheld on it and also the gross amount (in boxes 3.1, 3.2 and 3.3 of the form R40 respectively).
You also need to tell HMRC about other taxable income that you received in the tax year – including the state pension.
You do not need to send interest certificates or any other back up with your claim, but HMRC might ask to see them before they process the form. If so, you will probably be asked for the originals. Take copies for your own records before sending them to HMRC.
The financial institution paying you may not give you an interest certificate automatically, but you can ask them to send you one. They have to send you a certificate free of charge if you ask for one and they have not sent one out before.
If you have lost an interest certificate and ask for a duplicate, they may charge you, so it is usually best to find out first how much a duplicate interest certificate will cost.
What information do I need to keep?
We suggest that you keep the following documents:
- a copy of the completed form
- proof of postage from the Post Office recording the date you sent it to HMRC, in case of later query
- the paperwork to support the claim for repayment, for example, interest certificates.
What are the time limits for claiming back tax?
The time limits for claiming back overpaid tax are set out in the introduction page.
Do I have to wait until after the end of the tax year to make a claim?
You need not wait until the end of the tax year to make a claim, though you may have to make a provisional claim and a final claim if you cannot provide the exact figures if you claim before the tax year end.
How soon will I get my repayment of tax?
HMRC say it normally takes six weeks to get a refund. HMRC sometimes want to check some things before sending your repayment, as part of their aims to prevent people claiming tax back fraudulently, so it could take longer.
Between April and September following the end of the tax year there may be delays as this is the most popular time for sending in the forms.
You may also have to wait longer if HMRC decide they need to see supporting information, such as interest certificates.
You might receive your repayment more quickly if you make your claim online, as there should be fewer postal and processing delays.
If you are worried that your repayment is taking a long time to appear, you should telephone HMRC and have your National Insurance number to hand.
Where can I find more information?
You can find more information on form R40 and how to tell whether you are eligible for a repayment of tax on GOV.UK.
There is a guide on how to complete form R40, including an annotated version in our resources section.
There is more information about using form R40 to claim a refund of tax on PPI interest on our dedicated page.