Banks and buliding societies are required by law to deduct 20% tax on savings interest before it is paid.  Pensioners who are non-taxpayers, or who qualify for the 10% savings rate, could be losing out if they don't act to reclaim the tax paid. 

Pensioners who have overpaid tax on interest on their savings can reclaim it using HMRC Form R40 and non-tax payers can get any future savings interest paid gross, without deduction of tax, by filling out Form R85 and sending it to their bank or building society.

As part of their TaxBack campaign, HMRC is writing to around 3.4 million pension credit recipients, asking them to check whether they have overpaid tax on their bank or building society interest.

If you're not sure whether you're due a tax refund then contact us today.