Tax on Interest

If you received a GMP arrears payment in the tax year to 5 April 2024, it included interest income.

The interest element was not taxable at source (i.e. the Scheme was not to deduct tax).

If the total interest income you received, including from other sources, was higher than your interest income allowance in the tax year 2023/24, you are responsible for reporting this to HMRC and paying any resulting tax due.

Income Tax band              Personal Savings Allowance

Basic rate                            £1,000

Higher rate                        £500

Additional rate                     £0

During May we will send letters to members where the interest on the arrears is more than £250.

If you have interest income from other sources that is close to, or exceeds the annual allowance, but you have not received a letter, you may contact the administrators to confirm the level of interest on your arrears payment. Please remember that if you have not received a letter, the interest is less than £250.