Are switching incentives or rewards taxable?

TomSawyer2112

If I switch current account and receive one of the switching incentives on offer at the moment, and/or if I receive Halifax's £5 monthly "reward" for holding £5000 in its Reward account, then do these need to be declared on my year end tax return in the same way that regular interest does?

YorkshireBoy

TomSawyer2112 said:

If I switch current account and receive one of the switching incentives on offer at the moment, and/or if I receive Halifax's £5 monthly "reward" for holding £5000 in its Reward account, then do these need to be declared on my year end tax return in the same way that regular interest does?

Switching incentives are not taxable, as they aren't classed as "ongoing" payments.
Some "Reward" payments are taxable, and some aren't. You'd need to read the respective T&Cs. For example, here's what Halifax say about their Reward payment...

"For the £5 for £5,000 offer If you choose to keep £5,000 or more in your account, the Monthly Reward will be paid ‘net’ after the deduction of income tax at the rate set by law (currently 20%). The gross value of the Monthly Reward before income tax is taken off is £6.25. If you’re a higher rate tax payer, you may have to pay extra income tax on the Monthly Reward. If we have deducted more tax than you have to pay you may be able to claim it back from HMRC."