Nationwide Building Society, the world's largest building society, has announced that its £100 Fairer Share bonus payment for 2026 will be reduced to £55 for some recipients. The payments, distributed between June 10 and June 30, are subject to UK income tax, meaning recipients may owe tax to HMRC.
Tax Implications Explained
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, clarified: "It is treated as interest for UK income tax purposes. So, it will be reported to HMRC." Under Labour Party government rules, basic rate taxpayers receiving £100 would owe £20, higher-rate taxpayers £40, and additional rate taxpayers £45. The same proportional tax applies to the reduced £55 payment.
Personal Savings Allowance Warning
Ms Springall advised savers to stay within their personal savings allowance (PSA): "As interest rates have been creeping up, and fiscal drag hits hard, more savers are being caught up in breaching their PSA. If in doubt, opening a cash ISA or stocks and shares ISA can help shield cash from tax, but savers need to be aware of the changes in April 2027, when the annual cash ISA allowance will drop to £12,000, though it remains at £20,000 for those aged 65 or over."
Customer Reactions
Reactions on social media have been mixed. One delighted customer wrote: "Nationwide is paying for my takeaway this weekend." Another joked: "I was happy, and then my mum said that's the money I need to give it to her for rent... thanks mum." A third praised: "Nationwide, what a diva, they've got loyalty for LIFE at this point." Others expressed gratitude: "Got to love Nationwide. Another £100 from the Fairer Share. Anyone else getting the payment? Hello, free monies!" and "Happy Fairer Share day! A massive thank you to Nationwide. I wouldn't bank with anyone else!"
However, not all feedback was positive. One disgruntled customer commented: "I've banked with Nationwide for years. Various loans, a credit card, and savings accounts at various points, but because in recent years your rates weren't competitive enough, my loyalty to the bank was rewarded with no Fairer Share payment this year. Disappointed."
The reduction from £100 to £55 for some recipients has sparked debate among customers, with many questioning the criteria for the lower payment. Nationwide has yet to comment on the specific eligibility rules for the reduced bonus.
