Stocks & Shares ISA

Hello, I have some general questions when opening a Stocks & Shares ISA account. 1. After opening a Stocks & Shares ISA account, within the current tax year, we can get 1% cashback as an incentive whenever we make deposits in the ISA account. However, the cashback is deposited into a normal investment account (non-ISA). May I know if it is regarded as other UK income (annual payment)? 2. When keeping the deposits in the Stocks & Shares ISA account and a normal investment account, the investment platform gives daily interest to us. I know that we don't need to declare the interest arises in the Stocks & Shares ISA account. However, which box should I declare the interest paid by the investment platform to a normal investment account? Thank you for your clarification.

Hi,

Any interest from Non ISA accounts is taxable income and should be declared as untaxed interest in your tax return.

Thank you.

Hello, How about the 1% cashback deposited into a normal investment account (non-ISA)? Is it regarded as other UK income (annual payment)? Thank you.

Hi C K,
Please refer to see if it meets the conditions:
SAIM8020 - Annual payments: meaning of annual payment
Thank you. 

Hello. I have read SAIM8020 and found that the cashback may not have all four characteristics. 1st characteristic: Yes. the payment is under a legal contract and a promotion campaign. 2nd characteristic: No. The obligation to make payments is just for deposits made within a tax year. 3rd characteristic: No. The cashback is capital and not income. 4th characteristic: Unsure. The cashback is paid to a non-ISA investment account when I make a deposit to an ISA investment. I am not sure if it is regarded as ‘pure income profit’ that comes to the recipient without he or she having to do anything in return. I have also read SAIM8030 and SAIM8040 but I am still unsure if it is ‘pure income profit’. Can you clarify, please? I have also read the Statement of Practice 4 (1997). It said, " In general, ordinary retail customers purchasing goods, investments or services at arm’s length will not be liable to Income or Capital Gains Tax in respect of any commission, discounts or cashbacks received by them." Can I know, as an ordinary consumer, if making deposits to a retail investment account is regarded as "purchasing investments" in the Statement of Practice 4 (1997)? Thank you.

Hi CK,
The guidance at Savings and Investment Manual SAIM8020 - Annual payments: meaning of annual payment advises Inducements or rewards offered to customers by a trade, profession or vocation might constitute annual payments chargeable to tax under ITTOIA05/S683 if they possess the above four characteristics.  
You have stated that it does not meet all characteristics.  Based on your finding, the cash back would not be taxable.
Thank you.

Hi I hope I am writing this question in the same place - quite confused as to how this works. I'm changing broker from IG to T212, via partial transfer because some of my IG holdings T212 don't offer, so I will migrate all the stocks I can, and leave the rest on IG. However. From what I understand the rule is that you can only pay into one Stocks and Shares ISA per year So as much as I wouldn't be "paying into" my old one anymore, if i ended up cashing in on some of the stocks that I didn't migrate over, would I still benefit from the ISA tax relief? Or would I then be subject to the going CGT or whatever

Hi BB,
As long as they are from the stocks and shares ISA, no Capital Gains Tax would be due.
Thank you.