Are bank welcome rewards taxable?

Posted Fri, 06 Oct 2023 18:02:55 GMT by Cheuk Hang Sin

I received a 'REFUND - WELCOME REWARD' of GBP 500 into my UK bank account. Would this GBP 500 be counted as taxable income? Thank you.

Posted Fri, 13 Oct 2023 13:31:55 GMT by HMRC Admin 20 Response

Hi Cheuk Hang Sin,

It depends if there are any 'ties'.
Please refer to guidance at SAIM8020 - Annual payments: meaning of annual payment and the associated links

Thank you.

Posted Sun, 15 Oct 2023 22:05:27 GMT by Cheuk Hang Sin

Dear HMRC Admin, Thank you for your response. From my understanding, the one-off 'refund - welcome reward payment' was not an annual payment, because it was not a recurring payment and not extended for more than a year. Since the 'refund - welcome reward' does not possess all four characteristics at the same time, should it be not classified as an annual payment? Thank you.

Posted Wed, 18 Oct 2023 13:17:14 GMT by HMRC Admin 32 Response

Hi,

No, it should not.

Thank you.

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