My 91 year old Mother in Law has a savings account with the Halifax. On her behalf, I completed an R85 to register for tax free interest. The Halifax have replied that they hold a "Notice of De-registration" from HMRC against the account. What does this mean and why should it be so?
Upon receipt a completed R85 form a bank or building society should ordinarily start paying interest to the account holder without the deduction of income tax (i.e. gross) unless:
- they receive instructions to the contrary from the investor or the person who completed the R85 form on their behalf
- they receive a de-registration notice from HMRC, or
- they receive notification that the account holder has died, or
- they receive notification that the account holder has been made bankrupt.
In your case presumably HMRC has likely sent the Halifax a de-registration notice to the Halifax regarding your Mother in Law's account in the belief that she should be paying tax on her savings account interest. Unfortunately Halifax is unable to accept an R85 form until the de-registration notice is removed (i.e the account is re-registered). To do this your need to contact your Mother in Law's tax office. Failing that call HMRC on 0845 980 0645.
I hope that helps
Money to the Masses