What is taxable interest?

Eco_Miser

TrickyDicky wrote: »

I also have a couple of regular saving accounts that wont pay out until after april. Some money went in now and some will go in after april. Am I likely to receive the full 12 months interest tax free or not or partially paid and partially unpaid?

Interest is taxed wholly in the financial year it is received. So a regular saver paying out 6 April 2016 is taxed in 2016/17 (probably 0%) even though the interest was earned in 2015/16.
Similarly with n-year fixed interest accounts - some have all the interest added and taxed in the final year, others have interest added and taxed each year on the anniversary of opening.

beefturnmail

OK so I think I've got this.

- Switching incentives are not taxable
- Halifax reward is taxable and will continue to be so (so does not count to tax free allowance for interest earned)

grey_gym_sock

bigfreddiel wrote: »

Have a NISA day!

not sure what independent grocers have to do with it ... surely anything they pay you is a discount on your groceries, not interest

(glad to see that the government seems to have given up on renaming ISAs as NISAs.)