Nationwide Building Society has begun distributing £100 payments to eligible customers as part of its Fairer Share Scheme, but the bank is advising recipients to seek tax advice if they are unsure about potential tax liabilities.
Payments underway
Starting today, June 10, the building society is sending out the latest round of payments to more than four million qualifying members. Nationwide aims to complete all payments by June 30. The total payout amounts to approximately £440 million, benefiting around 4.4 million eligible customers.
However, the free cash could have tax implications. Nationwide has stated that some individuals may be liable for income tax on the payment, depending on whether their total interest received in the tax year exceeds their personal savings allowance (PSA).
Understanding the personal savings allowance
The PSA allows basic rate taxpayers to earn up to £1,000 in tax-free interest each tax year, while higher rate taxpayers can earn up to £500 tax-free. The Fairer Share payment is treated as interest for UK income tax purposes. Nationwide will not deduct any tax from the payment but will report it to HM Revenue and Customs (HMRC).
If customers are in any doubt about their tax position, the society recommends they seek independent tax advice.
Eligibility and history
The Fairer Share payment is available to eligible members who use Nationwide for their everyday banking and hold qualifying savings or mortgage products. This is the fourth consecutive year the payment has been made, reflecting the bank's strong financial performance.
Stephen Noakes, Nationwide’s retail director, commented: “We’ve made strong progress with this year’s Fairer Share payment, surpassing four million payments on the first day. We’re pleased to be able to reward eligible members with £100 for the fourth consecutive year, reflecting Nationwide’s strong financial position.”
The payment was announced in May and is contingent on Nationwide’s financial strength and board approval.
