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Posted Mon, 05 Dec 2022 21:57:40 GMT by connectiondue
hi hmrc admin - I have a NRE fixed deposit for 3 years i.e. from 1 Apr 21 to 1 Apr 23 and the interest accrues every year but will be paid after 5 year during maturity. I am currently on 40% tax bracket. I have not used by PSA for tax tear 20-21, 21-22, 22-23 and when my NRE fixed deposit is matured in 1Apr23, can I deduct/use my PSA for the interest earned for each year when it was accrued which means I can use my PSA allowance for all three tax years 20-21, 21-22 and 22-23 when interest is paid in 1Apr23? please can you guide thank you
Posted Thu, 08 Dec 2022 13:24:59 GMT by HMRC Admin 32
Hi,

Unused personal savings allowances cannot be carried forward into a future tax year.  

Tax on savings interest

Thank you.
Posted Fri, 09 Dec 2022 16:15:07 GMT by connectiondue
Thank you dear Can I not net off the psa againt interest accrued for same tax year ? Thank you
Posted Tue, 13 Dec 2022 09:55:39 GMT by HMRC Admin 17

Hi,
 
The personal savings allowance can be used against your interest but only in the year received.

You cannot use any unused allowances from previous years  .

Thank you.
Posted Tue, 13 Dec 2022 10:23:46 GMT by connectiondue
Thank you Hmrc admin 17 for the confirmation

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