What about tax?

We’re giving you the tax information below to help you make your own decisions. It’s not advice. It’s based on our current understanding of tax rules, but these might change. Remember that tax depends on your individual situation – if you’re not sure you should seek professional advice.

Income tax and National Insurance

We take your chosen amount from your pay after tax has been paid, so you won’t need to pay any more income tax or National Insurance on your savings.

If you choose to buy NatWest shares at the end of the plan, and you keep them, you’ll be entitled to any dividends we pay to our shareholders. Depending on your situation you might need to pay income tax on these dividends.

Capital gains tax

If you buy NatWest shares at the end of the plan and sell them at a profit, you might need to pay capital gains tax.

Under the current rules you’re allowed to make £6,000 of gains each tax year before you have to pay any tax, but this is being reduced to £3,000 from the 2024/25 tax year.

Remember you’ll only need to pay tax if you make a profit in excess of the limit.

There are a number of ways to reduce any capital gains tax liability, and in most cases you’ll be able to avoid paying it entirely. You’ll find more information in our helpful blog post (opens in a new tab).