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Tax liability on 'with profit' account
N1ck_K
Posts: 3 Newbie
In October I put savings into a one-year fixed term Sharia account. The profit is added at the end of the term so, as I see it, at the end of this tax year it will have generated no additional revenue (if I cashed it in on 5 Apr '21 I would only get back my original investment). Will I have to declare any interest on this account for the 2020/21 tax year?
This is relevant because for the '20/'21 tax year I am taxed at 40% whereas in the 2021/22 tax year, having given up work, I will be in the 20% bracket and my personal savings allowance will have increased.
This is relevant because for the '20/'21 tax year I am taxed at 40% whereas in the 2021/22 tax year, having given up work, I will be in the 20% bracket and my personal savings allowance will have increased.
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Comments
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As with standard interest accounts, the tax liability only arises when it's actually added to the account, so if that's next October then it'll fall within 2021/22.1
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