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About Cynergy Bank

We’ve built our business in the UK since 1955 on the belief that you have more important things to do than wrestle with complex products or spend valuable time administering your banking arrangements.

Personal Savings Allowance

On 6 April 2016 the Government introduced the Personal Savings Allowance, which is the amount the Government allows you to receive in savings’ interest each year (excluding ISA) before you need to pay tax on your interest.From 6 April 2016 your annual Personal Savings Allowance is £1,000 or £500.£1,000 – if you are a basic rate taxpayer the first £1,000 interest you receive each year will be tax-free.£500 – if you are a higher rate taxpayer the first £500 interest you receive each year will be tax-free.Additional rate taxpayers do not receive a Personal Savings Allowance.ISA tax-free savingInterest received on ISA (Individual Savings Account) does not count as part of the Personal Savings Allowance. This means you can continue to save tax-free in your ISA up to the annual limit, which is £20,000 for the tax year starting on 6 April 2018.It remains beneficial to save in an ISA because the tax-free benefit on interest is in addition to the Personal Savings Allowance and applies on your savings as long as they are kept in an ISA. You can therefore build up your tax-free savings in an ISA year-on-year.Tax adviceCynergy Bank cannot give tax advice. If you need further information about the Personal Savings Allowance or the requirement to pay tax on interest received please go to or contact HMRC or your professional tax adviser. The tax treatment depends on individual circumstances and may be subject to change in the future. Individuals (and organisations) will be notified of any tax they should pay on interest received and are responsible for ensuring that this tax is paid.

How do I find out if I am a basic rate taxpayer or higher rate taxpayer?

This depends on your personal circumstances, including your income, and is determined by HMRC who set the thresholds each year between basic rate tax and higher rate tax. HMRC issue UK residents with their individual tax codes each year. To see the thresholds between basic, higher and additional rate tax bands for the 2018-19 tax year or to find out more about your tax code go to

How will I know if I need to pay tax on interest I have received?

Banks will continue to report to HMRC each year the interest they have paid each of their account holders. HMRC will notify any individuals who are required to pay tax on any interest they have received. Where possible HMRC aim to collect any interest due on savings automatically from income such as salary by adjusting the individual’s tax code. Account holders remain responsible for paying tax on interest advised to them by HMRC.Individuals who submit a tax return should continue to do so and continue to include the interest they have received.

Accounts held in joint names

HMRC deem interest paid to account to be shared equally between each account holder. Each account holder can use their Personal Savings Allowance against their share of the interest.

Non-UK residents (for tax purposes)

As with UK residents, you will receive interest without the deduction of tax. HMRC will contact you if they think you have tax to pay on any interest you have received in the UK. You may have tax to pay on your UK savings income in the jurisdictions where you are resident for tax purposes. For further information you should contact the tax office in your local jurisdictions or your professional tax advisor.

Savings interest tax forms R85 & R105

These forms are no longer required to be submitted (from 6 April 2016). HMRC require banks to hold previously submitted forms until 2018.

Interest certificates

If you have received interest in the tax year 2015-2016 in an account held with Cynergy Bank we will send a certificate of tax deducted by 1 May 2016.From April 2017 onwards certificates of tax deducted will no longer be issued automatically. From April 2017 certificates showing the amount of interest received will be conveniently available from Online Banking .

Organisations or entities (non-individuals)

The Personal Savings Allowance applies only to individuals. Organisations or entities such as companies, charities, associations, clubs and societies will continue to receive interest without the deduction of tax. Those organisations or entities that currently pay tax on interest they receive should continue to report interest they have received in their tax return as is currently the case. To find out whether your organisation should pay tax on interest received please contact HMRC or your professional tax adviser.


Partnerships, including limited liability partnerships, will also receive their interest without the deduction of tax. Individual partners qualify for a Personal Savings Allowance but partners that are not individuals, such as corporates, do not. Whether or not there is tax to pay on the interest received by partnerships will be determined by HMRC using the partnership’s tax return. To find out whether your partnership should pay tax on interest received please contact HMRC or your professional tax adviser.

More questions?

We have a section for Frequently Asked Questions on our products and services.

Frequently Asked Questions