Tax on interest on long term fixed rate bond

Thanks for the answer. If the society gives members a choice as to whether they are paid interest in cash, or whether the amount is reinvested into share capital to be reclaimed later, does the interest need to be declared as received (because the member had a choice) or not declared (because they didn't actually get the cash)?

Hi
As you have the choice, it is annually.

Hi Dave,
As you have the choice, its declared annually.
Thank you.

If interest is paid at maturity but compounded annually, does this affect the personal savings allowance yearly or at maturity?

Hi NR0000 0000

As paid at maturity it will be the year it actually matures.

Thanks

Core Capital Deferred Shares Can you tell me if the distributions from these shares is treated as dividends or interest?

Hi Spencer Lewis,
It should be dividends.
Thank you. 

Dear HMRC...got a 3 yr bond and the interest is to be paid into the account at the end of 3 years. BUT..I can close the account at any time to recieve (my capital + pro-rata interest at that point - some penalty). a) do you regard this as having access to interest all the time because technically I can? b) my bank provides me statement with what interest has 'accrued' at the end of each financial year -- just to be clear, the interest is not credited to my account until maturity. I presume the bank provides the accrual statement, so that it is not big burden for me taxwise at the end of 3 years and secondly, it gives me an idea about how much I will get if were to premature my bond. In this case, do I have a choice whether to include accrual interest every year ( because I can access it after penalty i.e. available to me) or submit it as big lumpsum at the end of 3 years?

Can you please respond to my questions (a) and (b) above please?

Hi achopr,
As youcstate the interest is not credited until the account matures, you will declare ALL interest in the tax year it is credited.
Thank you.