Djm23

Rad1sh. I agree with you. Either the official Interest Statements (used to be called tax deduction certificates) should be followed or not followed. I am hoping my simple question above to the HMRC Admin can close this point: Should interest be reported in the year it was credited in line with the Bank/Building Society provided interest statement and irrespective of whether it is actually credited to the fixed rate bond or the nominated account? If the answer is no, how is it to be explained to the Bank/Building Society that their documents are incorrect and not applicable for the year they have been produced and official tax returns? Pragmatism suggests the statements produced by the Banks/Building Societies should be followed.

Thanks, can you answer my specific question above though please: Can the HMRC please confirm in the above scenarios that the interest should be reported in the year it was credited in line with the Bank/Building Society provided interest statement and irrespective of whether it is actually credited to the fixed rate bond or the nominated account

There is another slight variation that needs to be answered. Most fixed rate bonds allow the account holder to choose if the interest is paid to the fixed rate bond itself or a nominated account. Some will also allow you to vary this initial selection for where the interest is paid to during the bond term. In both circumstances they report the interest with an interest statement / tax certificate during the tax year it was credited, not at the end of the term, and irrespective of where it was actually credited to. Can the HMRC please confirm in the above scenarios that the interest should be reported in the year it was credited in line with the Bank/Building Society provided interest statement and irrespective of whether it is actually credited to the fixed rate bond or the nominated account.