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Posted Wed, 10 May 2023 10:52:59 GMT by Chris Smith
Hi, Please could you clarify when I need to notify HMRC of the interest received on my five year fixed rate bond on my self assessment tax return? The interest is paid back into the bond annually, although I do have the option of taking the interest out of the bond each year. Therefore, do I notify HMRC each tax year that the interest is paid back into the account, or only once the bond has matured after five years and I receive the balance of the account? The building society does notify me of the interest paid into the account each tax year. Many thanks
Posted Tue, 16 May 2023 13:14:52 GMT by HMRC Admin 5

As you can access the funds annually(even if do not withdraw them) then the interest should be declared on an annual basis.

You can find guidance here  SAIM2440 - Interest: taxation of interest: when interest arises When does interest arise?

Thank you.

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