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Posted Tue, 03 Dec 2024 19:41:21 GMT by Edward
General question, I know all interest in an ISA is tax free and doesn't need to be declared in the "Untaxed Interest" section on the self-assessment form. But does the interest count towards adjusted net income, for things like the high income child benefit charge? Just making sure there isn't an edge case I'n not aware of when an ISA or its interest would need to be included on a self-assessment. Thanks in advance,
Posted Mon, 09 Dec 2024 10:52:26 GMT by HMRC Admin 19 Response
Hi,
No, ISA interest is not taken into account for the High Income Child Benefit Charge. You can see guidance here:
High Income Child Benefit Charge
Thank you.
Posted Mon, 09 Dec 2024 11:12:28 GMT by Edward
Thank you for the clarification, does ISA interest affect ANI at all? The other scenario (other than high income child benefit charge) is how the Personal Allowance gets tapered off once your ANI goes over the threshold. Am I correct in thinking that ISA interest is not counted towards this either? Thanks in advance, just want to make sure I can act like my ISA interest does not exist as far as self-assessment and tax reporting goes!
Posted Wed, 11 Dec 2024 10:31:25 GMT by HMRC Admin 21 Response
Hi,
As the interest on the ISA is non taxable then will not be taken into account.
Thank you.
 

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