Nationwide Building Society has disbursed its latest Fairer Share payments, injecting approximately £440 million into the accounts of over four million eligible members.
However, recipients are being advised to consider potential income tax implications arising from the payout.
The significant sum, distributed to around 4.4 million qualifying Nationwide customers, began reaching accounts from 10 June.
While a welcome bonus for many, the building society has cautioned that some individuals may face income tax liability on the payment.
This depends on whether their total interest earnings for the tax year surpass their Personal Savings Allowance (PSA).
The PSA permits individuals to earn interest tax-free up to specific thresholds: basic rate taxpayers can accrue £1,000 in tax-free interest annually, while higher rate taxpayers are allowed £500.
Nationwide explicitly states that these “Fairer Share” payments are classified as interest for UK income tax purposes.
It is not required to deduct any tax from the payment, but it will report it to HM Revenue and Customs (HMRC).
The Society said that if people are in any doubt they should seek their own tax advice.
Get a free fractional share worth up to £100.
Capital at risk.
Terms and conditions apply.
ADVERTISEMENT
Get a free fractional share worth up to £100.
Capital at risk.
Terms and conditions apply.
ADVERTISEMENT
Nationwide has given itself until 30 June to complete the remaining payments.
People can check the full terms and conditions on Nationwide’s website to see if they could be eligible.
In general, to meet the criteria for the new £100 payment, people must be a member of Nationwide with a qualifying current account, plus either qualifying savings or a qualifying mortgage.
Members may have had qualifying savings if they had at least £100 in total in one or more personal savings accounts or cash Isas with Nationwide at the end of any day in March 2026.
The criteria need to have been met by 31 March 2026. This year’s payment was announced by Nationwide in May.
Stephen Noakes, Nationwide’s retail director, said: “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.”
Nationwide has paid out a Fairer Share Payment since 2023.
Payments are dependent on Nationwide’s financial strength and are subject to Board approval.
The news comes as Nationwide Building Society revealed a drop in its annual profits after taking over Virgin Money and made a pre-tax profit of £1.49 billion for the year to the end of March. This is down from the £2.3 billion it made last year.