Is a tax return needed even if the interest is from savings held in cash ISAs?

SonOfPearl

If my interest from savings is above £10k but if you exclude savings in cash ISAs the interest is less than £10k, would I need to complete a self assessment tax return? 

masonic

No, not if that was the only reason you'd have needed to self assess.

ColdIron

ISAs are effectively invisible to HMRC for tax purposes

dgpur

No. You don’t declare the interest, so it is not part of any self assessment process. Only look at non-ISA interest before judging if you need to make a claim.

SonOfPearl

Thanks all, that's what I thought. Assuming that's true, I find the Gov.uk website guidance misleading. If I answer the question "Did you get more than £10,000 from dividends or savings and investments?" with a YES then it says I need to do a return. No mention of ISAs. If they are only talking about taxable interest then they really need to make that clearer I think.

[Deleted User]

Hi,

SonOfPearl said:

Thanks all, that's what I thought. Assuming that's true, I find the Gov.uk website guidance misleading. If I answer the question "Did you get more than £10,000 from dividends or savings and investments?" with a YES then it says I need to do a return. No mention of ISAs. If they are only talking about taxable interest then they really need to make that clearer I think.

Isa interest is tax free, so non declarable so you don't include that in your interest return.

Beddie

SonOfPearl said:

Thanks all, that's what I thought. Assuming that's true, I find the Gov.uk website guidance misleading. If I answer the question "Did you get more than £10,000 from dividends or savings and investments?" with a YES then it says I need to do a return. No mention of ISAs. If they are only talking about taxable interest then they really need to make that clearer I think.

This came up on here a few months back. It is poorly worded, as it could say on there "ISAs are excluded" then there'd be no ambiguity. But as others have said, disregard ISA interest as HMRC aren't interested in it.