Annual savings account statement and tax certificate
Frequently asked questions
- Why has tax been deducted from my interest?
- Is the interest shown a full year's interest?
- What should I do if I think there is an error on the statement?
- Which accounts receive investment statements/tax certificates?
- How can I check the latest interest rates?
- How do I get more information on savings accounts that are currently available?
Why has tax been deducted from my interest?
We are obliged to deduct income tax unless you have registered to have interest paid gross. As a general rule, interest earned on all bank and building society accounts is currently subject to taxation at 20%. This means we are obliged to deduct tax at this rate before your interest is paid, and the tax deducted is then paid to HM Revenue and Customs (formerly Inland Revenue). Payments made in this way are coded as ITN in your passbook or, for postal accounts, on your detailed statement.
Non-taxpayers may be able to receive their interest without tax deducted, by completing the HM Revenue and Customs form R85, and sending it to us. All payments of interest made after the form R85 has been registered will be made without tax deducted. Payments made in this way are coded as ITG in your passbook or, for postal accounts, on your detailed statement.
For joint accounts with only two investors, interest can be paid partly with tax deducted and partly without, where only one investor registers the form R85. Payments made in this way are coded as ITP in your passbook or, for postal accounts, on your detailed statement.
Is the interest shown a full year's interest?
The interest shown on the statement is the total interest paid to you in the tax year. It does not show the interest earned between 6 April 2007 and 5 April 2008, but the amount of the interest actually paid to you during this period.
An example: if an account receives interest annually on 1 May, interest would have been paid on 1 May 2007. Whilst interest continues to be earned after this date, the next interest payment is not actually made until 1 May 2008. Therefore, this statement will show only one payment of interest, made on 1 May 2007, as HM Revenue and Customs want to know what you have been paid, not what is still to be paid. The 1 May 2008 payment will appear on next year's statement.
What should I do if I think there is an error on the statement?
First of all, please check your statement carefully, using your passbook or, for postal accounts, your detailed statement, and check your account terms. In the event of any remaining concerns, please write to the Chief Internal Auditor at the following address:
Chelsea Building Society
Thirlestaine Hall
Thirlestaine Road
Cheltenham
Gloucestershire
GL53 7AL
Please include either the original or clear copies of the relevant documents, so we can investigate your concerns.
Which accounts receive investment statements/tax certificates?
First of all we look at your account, and find out if you have received interest between 6 April 2007 and 5 April 2008. This is the period covered by the UK tax year, and is the period the HM Revenue and Customs are concerned about.
If you have received no interest between these dates, we will not send a statement/tax certificate to you.
If you have received interest between these dates which has been either added to the balance of your account, paid to another Chelsea account or paid directly to your bank and your account is still open on 5 April, we will send you a combined annual savings account statement and tax certificate.
When you close an account, we will give you a tax certificate if you ask us.
How can I check the latest interest rates?
Latest interest rates are permanently displayed in all of our branches, and online.
Changes to interest rates on our branch based accounts are displayed within all of our branches, and also in 2 national newspapers - normally the Daily Mail and the Daily Telegraph.
