Taxation, account standing charge, santander

freder_2

From the title as you can see, what is the taxation status when you pay to be in the 123 account, a monthly fee of £5, can you set this against the 11/2% earned?

ColdIron

You pay income tax on interest earned, you cannot offset this with the £5 monthly fee

bowlhead99

The fact that you incurred a monthly cost of buying a banking service or other financial services, or for that matter any other day to day running costs of your life... doesn't mean you didn't earn interest on your cash deposit. Tax is payable on savings and investment income unless out was earned inside a tax shelter like ISA or pension.

So you can't offset them, any more than I can offset the price of the toothpaste I used this morning from this month's salary when I pay my income tax, even though my employer expects me to arrive at work without toast in my teeth.