Retirement Grant Lump Sum - Late Payment Interest

Hello, I have recently retired in April and have received from my pension provider my Tax Free Retirement Grant Lump Sum payment. In addition I have been paid an interest amount of £299.00 due to late payment to me of the grant. Can you advise please if the interest payment should be declared and if so how I would do this. I have undertaken the online Self Assessment tax return which advises I do not need to send a Self Assessment tax return. Thank you.

Hi Chester65,

The interest payment would need to be declared as it forms part of the personal savings allowance (£1000 if you are basic rate £500 if you are higher rate) so would be added to any other interest received to ascertain any tax due on it (not ISA).

Thank you.

Thank you for the response and advice. Kind regards.