Tax overpaid on savings

Tax overpaid on savings

Tax overpaid on savings

The R40 form Claim for repayment of tax deducted from savings and investments is available on the GOV.UK website. Individuals who have paid too much tax on interest can use the R40 form to claim back any overpaid tax. The form and associated guidance have been updated for the 2020-21 tax year.

Claims can be backdated for up to four years after the end of the tax year. This means that claims can still be made for overpaid interest dating back to the 2016-17 tax year ending 5 April 2017. The deadline for making claims for the 2016-17 tax year is 5 April 2021.

The personal savings allowance provides for an exemption of up to £1,000 of a basic rate taxpayer’s savings income and up to £500 of a higher rate taxpayer’s savings income. The PSA is not available to additional rate (45%) income taxpayers i.e. those earning over £150,000.

Banks and building societies no longer deduct 20% tax on savings interest. However, form R40 can still be used to claim back tax overpaid on savings.

For more information on Tax overpaid on savings, Book a Free Consultation

See also  31 October paper Self-Assessment filing deadline

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