Isa interest and HMRC

KathF

Ok so been looking into ISA and have to say the interest and tax confuse me
Ive read i dont declare ISA interest on my tax return, and banks declare interest oaid to individuals to the tax man. But the ISA is tax free so do the banks declare the interest paid on ISAs?
i read an article of one bank creating a mess by sending the interest info to the tax man and triggering a lot of tax bills and a comment from tax man that banks arent meant to include the ISA interest in the interest reports to them. Is that right? do banks report ISA interest to tax man or dont they, im reading confusing info on net and dont want to not declare on a tax return only for bank to declare it and end up being done for not declaring it as the interest i say i get wont match what the bank says it pays etc
thanks in advance
Kath

nick74

ISA interest should not be declared on a tax return.

I've no idea whether the banks have to declare ISA interest to HMRC or not, but either way you should not be including it on your tax return.

https://www.gov.uk/individual-savings-accounts/how-isas-work

You do not pay tax on:

interest on cash in an ISA
income or capital gains from investments in an ISA

If you complete a tax return, you do not need to declare any ISA interest, income or capital gains on it.

KathF

thankyou

AnotherJoe

Don't let a mistake by one bank and no doubt subsequent scare stores by the Daily Fail or similar confuse what is a very simple situation.

You dont declare anything in your ISA to HMRC.

Not interest, not gains, not sales, not purchases. Nothing. It's as if it doesnt exist.

KathF

lol daily fail so apt
thankyou xx

dales1

AnotherJoe wrote: »

You dont declare anything in your ISA to HMRC.

This advice is exactly and memorably true for tax returns. But, as an aside, remember that you do include ISA interest in your IHT403 return to HMRC (as drafted before you shuffle off !) because you get extra lifetime 'gift out of income' headroom.
Dales