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Posted Fri, 22 Sep 2023 13:14:23 GMT by Pauline Kirk-Harding
Hi - I have recently become a landlord and am completing my first self assessment. I receive interest on my personal savings. So I answered 'Yes' to the Q: Did you receive any interest, for example, from UK banks, UK building societies, UK unit trusts (or untaxed foreign interest up to £2,000)? As a result I was asked to input details on the UK Interest Section of the self assessment. My interest is paid gross and then my tax code has been adjusted in order to recover the tax on interest. This means I cannot enter an amount for the 'Taxed UK interest. Enter the net amount after tax has been taken off' section. Because my tax is paid gross. My difficulty is that I neither can I enter an amount on the Untaxed UK interest (amounts which have not been taxed section). Because although I know the gross interest, I also know I am paying tax on it because my tax code is adjusted. I don't want to enter an amount in this box and be taxed again for it. Can anyone offer any advice on what to enter in this section of the self assessment?
Posted Mon, 02 Oct 2023 10:59:55 GMT by HMRC Admin 19 Response
Hi,

As interest paid by banks in the UK is paid gross, this should be declared under untaxed interest on the return irrespective of what is in your tax code.

Thank you.

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