Airmiles Rewards from Bank

Dear HMRC, When placing a fixed deposit with a certain bank, on top of the related interest, the bank also offer certain amount of air miles as incentives. May I know if these airmiles are taxable? and if yes, how would they be categorized, what allowances are they subject to, how does one convert them into monetary values, and whether the miles are taxable based on the date they were credited? or the date they were redeemed? Thanks

Hi,

Please have a look at the following guidance, as "Inducements or rewards offered to customers by a trade, profession or vocation might constitute annual payments chargeable to tax under ITTOIA05/S683" if they posess the 4 characteristics described in the guidance.

SAIM8020 - Annual payments: meaning of annual payment

Thank you.

Hi HMRC, Assume it is deemed an annual payment, how do I convert the airmiles into monetary value? Is there a fixed method or I can use any methods that are reasonable?

Hi gorwai88,
It would be the discount applied to the purchase of a flight.
Thank you.