Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Thu, 12 Sep 2024 14:31:00 GMT by Puddle Splash
Hello, I am receiving conflicting information between your guidance and the information banks provide. If I have a fixed rate bond for a term of five years for example and I have just received interest for the first year, do I declare that interest in the relevant tax year or do I wait until maturity before declaring the full amount ? As I'm aware interest only needs to be declared at the time when it becomes accessible, however an agent from a bank told me the interest I have received will need to be declared for the last tax year, despite it not being accessible and compounded. I am confused, please could you clarify the matter. Thank you
Posted Mon, 23 Sep 2024 07:18:11 GMT by HMRC Admin 19 Response
Hi,
If an individual is unable to withdraw or have access to the interest when it is credited to their account, or has a specific product such as a bond, the interest will not arise and therefore they will not be taxable until they have access to the interest. You can see guidance here:
SAIM2400 - Interest: taxation of interest: the tax charge
Thank you.

You must be signed in to post in this forum.