Tax automatically deducted on savings

[Yodel]

When the building society automatically deducts tax from the interest on your savings, do they always deduct it at the basic rate of tax, or do they deduct it at 40% if you're a higher rate tax payer?

[Grey parent]

It is deducted at one rate which is 20%

[makemesmile]

If you're required to complete a tax return, contact your bank and ask for a tax certificate which will give full info of tax deducted. Inland Revenue will then calculate how much addition tax you owe (if higher rate tax payer).

[dancecaller]

If you pay no tax you can fill in a declaration that the building soc will give you, then they pay all the interest without deduction.
If the interest uses up your allowance they will pay tax on all and you fill in a short tax form to reclaim part of the tax at the end of the year