Tax on individual corporate bond interest

chucknorris

I recently downloaded by tax certificate from Hargreaves Lansdown (HL) and it only identifies the 'Interest paid' from my corporate bonds. What it does not show is any credits for the pro-rata accrued interest that I paid up to the date of investing in the corporate bonds to the sellers. I have the contract notes which identify the amount. Does anyone know if there is a dedicated box on the tax return to deduct this interest, or do I merely deduct it myself and enter the net interest received on my tax return, but surely this would look incorrect to the inland revenue because HL would have informed them of the 'Interest paid'.

chucknorris

It looks like this situation is covered by the 'Accrued interest scheme' https://www.gov.uk/government/publications/accrued-income-scheme-hs343-self-assessment-helpsheet/hs343-accrued-income-scheme-2019
So you actually deduct the pro-rata accrued interest that you paid when investing in the bond, from the interest received, and only include that balance on the tax form.