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When is tax on saving interest paid?
Krakkkers
Posts: 1,331 Forumite
in Cutting tax
Lets say i have £66500 invested at 5% interest fixed for 5 years paid monthly into the same account.
After 5 years it will be worth £85,000 but when will the tax be paid? When the account matures? Yearly?
Assume i pay basic rate tax and have used my tax free savings allowance.
After 5 years it will be worth £85,000 but when will the tax be paid? When the account matures? Yearly?
Assume i pay basic rate tax and have used my tax free savings allowance.
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Comments
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It will be taxable in the tax year(s) the provider reports the interest to HMRC.
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Interest is taxable when received, so you add up the monthly interest received in the tax year (to 5 April).0
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