19. Deduction of Tax from Interest Paid

Under current legislation, interest on all fixed term deposits of £50,000 and above which are placed with the Bank is paid without deduction of tax unless the Account Holder specifies to the contrary. Interest on other deposits placed with the Bank is paid subject to the deduction of tax at the appropriate rate unless the Account Holder is a body corporate or completes to the satisfaction of the Bank an appropriate form.

Registered Charities currently receive interest without deduction of tax on deposits placed with the Bank on production to the Bank of original documentation, or at the discretion of the Bank certified copies of the original documentation, from the Charity Commissioners confirming the Registered Charity's charitable status.

Rules and practice regarding deduction of tax from interest paid on deposits are subject to variation at any time in line with prevailing legislation and Inland Revenue custom and practice.

Further details are available on request.

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