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An Income Tax question.

Can anyone assist please?

I need to know how interest on saving accounts is treated for income tax purposes.

Say I have a two year fixed rate saving account with the interest payable at the end of the term, say 2014. For tax purposes will the liability be spread over the two years or all on maturity in 2014.

Comments

  • jennifernil
    jennifernil Posts: 5,655 Forumite
    Part of the Furniture 1,000 Posts
    If the interest is credited to the account annually, even though it cannot be withdrawn, then it counts for the year(s) in which it is credited.

    If it is not credited until the maturity date, then it will all count for that year.
  • ATF101
    ATF101 Posts: 54 Forumite
    If the interest is credited to the account annually, even though it cannot be withdrawn, then it counts for the year(s) in which it is credited.

    If it is not credited until the maturity date, then it will all count for that year.

    Thank you for your reply.

    Now I need to check the T&C's of the savings account.

    Regards,

    ATF.
This discussion has been closed.
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