TAX on Long Term Fixed Deposit.

Dear HMRC I have Fixed Deposits which will be Matured in March 2023 i.e when the Interest and the Principal will be credited or received into my Savings Account. My questions are as follows Is my understanding correct that I have to pay tax on the interest gains on the term deposit only when it is credited or received at the time of maturity which in my case would be in March 2023 and pay the tax under financial year 2022-2023? or Do I also have to pay tax on the accrued interest every year even though I have not physically received or accessed the principal or the interest amount? I will appreciate if you can provide some guidance. Thanks and Regards

Hi,

You would declare the interest in 2022/23 tax year and the interest arising each year thereafter.

Thank you.