When is tax due on interest on a PIK loan note?

If a Payment in Kind (PIK) loan note was issued in the 2023-24 tax year with a 15% fixed annual interest rate, compounding monthly and is then redeemed and paid out in the 2024-25 tax year, in which tax year(s) is the tax on the interest due for an individual? In the year of issue (2023-24 tax year) Monthly at the point of compounding (in both tax years) Or on redemption (2024-25 tax year) Thank in advance

Hi DBR3,
If only paid out in the 24/25 tax year you will declare it then.
Thank you.