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Posted Sun, 21 Apr 2024 22:37:05 GMT by C K
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.
Posted Mon, 29 Apr 2024 12:06:06 GMT by HMRC Admin 32
Hi,

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

Thank you.
Posted Mon, 29 Apr 2024 12:18:08 GMT by C K
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.
Posted Thu, 02 May 2024 15:00:21 GMT by HMRC Admin 25
Hi C K,
Please refer to see if it meets the conditions:
SAIM8020 - Annual payments: meaning of annual payment
Thank you. 
Posted Thu, 16 May 2024 22:55:23 GMT by C K
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.

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