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Posted Wed, 10 Jul 2024 15:06:15 GMT by Tsz Kwan CHAN
Hi, I have a 1-year fixed-rate bond from July 2023 to July 2024 in Natwest Bank and the interest has been deposited into the same fixed bond account every month. However, I cannot withdraw the interest until the bond is matured in July 2024. I have received the Certificate of Interest from Natwest Bank which states the actual amount of interest received for the whole one-year bond and asks me to do the self-assessment for the 2023 -2024 tax return. My questions are: a/ Do I need to report the interest I earned from Jul 2023 to Apr 2024 in the 2023-2024 tax year only? Or..... b/ Do I need to report all the interests I earn from this fixed rate bond account in the whole one-year bond term(which is from July 2023 to July 2024) and the next 2024 to 2025 tax return? Please be reminded that I cannot withdraw any interest from this account until its maturity in July 2024. Please advise!
Posted Tue, 16 Jul 2024 14:42:43 GMT by HMRC Admin 32 Response
Hi,
If you are unable to access any of the capital or interest in the bond, until it matures, then you declare the total amount of interst in the tax year that the bond matures and you are able to access the capital and interest.  
If you have access to the capital in the bond at any time, then the interest is declared in each tax year that it arises.  
The provider will be able to give you this information.
Thank you.

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