We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
When is tax on saving interest paid?
Krakkkers
Posts: 1,255 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.
0
Comments
-
It will be taxable in the tax year(s) the provider reports the interest to HMRC.
0 -
Interest is taxable when received, so you add up the monthly interest received in the tax year (to 5 April).0
Categories
- All Categories
- 347.2K Banking & Borrowing
- 251.6K Reduce Debt & Boost Income
- 451.8K Spending & Discounts
- 239.5K Work, Benefits & Business
- 615.3K Mortgages, Homes & Bills
- 175.1K Life & Family
- 252.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards