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  • FIRST POST
    • FatherAbraham
    • By FatherAbraham 17th Jul 17, 11:19 PM
    • 737Posts
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    FatherAbraham
    Bank incentives are taxable income?
    • #1
    • 17th Jul 17, 11:19 PM
    Bank incentives are taxable income? 17th Jul 17 at 11:19 PM
    When one receives an incentive from a bank for opening a new bank account, such as £100, I presume this counts as taxable personal income?

    Warmest regards,
    FA
Page 1
    • xylophone
    • By xylophone 18th Jul 17, 1:13 AM
    • 22,881 Posts
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    xylophone
    • #2
    • 18th Jul 17, 1:13 AM
    • #2
    • 18th Jul 17, 1:13 AM
    No - a switching incentive counts as a discount and is not taxable.

    http://www.moneysavingexpert.com/news/banking/2015/02/theres-never-been-a-better-time-to-switch-bank-the-10-need-to-knows

    Tax. The free cash for switching is tax-free, but interest is taxed like income tax, eg, at basic rate you lose 20% of it (higher rate 40%). So £100 free cash is £100, but £100 interest is £80 (£60 at higher rate).
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