Luke

Thank you all for the response - and it seems that the advice from HRMC contradicts what Clive and Emlan are saying, so please can HMRC clear this up?! As this indicates that banks are declaring incorrect amounts to HMRC which are then challenigng individuals who have differing views based on your response HMRC admin 20 that we can amend the views that are provided by the banks Clive - If that is the case from HMRC that if there is a choice that the interest is deemed to have arisen then would be good for them to clear it up, and I will be happy to amend my views. In my case I can not access it at all until maturity therefore think slightly different to example 2 and then the question circles back around to the 'choice' of where interest can be paid. emlan - thank you, I think this is a similar situation, and appears that the confusion is not just on the part of the individual but also the submitting banks, and that your verbal confirmation is contradictory to what HMRC response above is in this thread, I might have replied to your prior thread too.

Hi HMRC Just trying to understand what tax is payable on Fixed Rate Savings account - where I can not access them until maturity. For 24/25 let say I have 3 Fixed rate savings accounts (for example): 1. Opened 4/4/24 - Maturity 3/4/26 (Tax year 25/26) - paid monthly c. £20 - therefore I would have £240 of Gross Interest added to may account in that period - and at the end of the Fixed rate save I would have made £480 2. Opened 4/4/24 - Maturity 3/4/25 (Tax year 24/25) - Paid Annually - £400 3. Opened 4/4/23 - Maturity 3/4/27 (Tax Yar 26/27) - Paid Annually £150, therefore £450 over the 3 years All these accounts I do not have access to the interest until maturity if the interest is paid into the account. From reading SAIM2440 and SAIM2400 my understanding is that: 1. If an individual is unable to withdraw or have access to the interest when it is credited to their account, or has a specific product such as a bond, the interest will not arise and therefore they will not be taxable until they have access to the interest. 2. Interest ‘arises’ when it is received or made available to the recipient. Interest has been made available if it is credited to an account on which the account holder is free to draw. Therefore my assumption is that my bank should be declaring for 24/25 the £400 from Savings account (2) only, not £790 for when interest has been 'paid' into the account. However, there is the option to pay the interest away to another account - 'if' that is selected I understand then at receipt Interest tax is payable Many Thanks Luke