D.I.R.T. Tax Refund

[annamac1]

Can we claim a tax refund on deposit interest as our total low income is not taxable? I am in receipt of Disability Benefit for some years. My other option might be to seek out a monthly interest deposit account that will pay interest gross? We are both under 65 and within 5 years of being OAPs!

 

[ClubMan]

See [broken link removed] (even if the rate of DIRT seems to be incorrect - isn't DIRT 20% and not 24%!?).

Deposit Interest
Deposit Interest Retention Tax (DIRT) at the standard rate, currently 24%, is deducted at source by Banks and Building Societies. There is no further tax liability on this interest but it must be declared on your annual tax return. If your total income is below your exemption limit a refund of DIRT tax can be claimed if you or your spouse is aged 65 or over, or permanently incapacitated by reason of mental or physical infirmity. Credit Unions do not deduct DIRT, therefore credit union interest is taxable in full.
<!--EZCODE LIST START--><ul><li>To claim a refund of DIRT use Form 54D (PDF format).</li></ul><!--EZCODE LIST END-->