Fidelity - taxing interest outside ISA?

Sea_Shell

Well, we've just received the Tax on Interest Statement from Fidelity for the 23/24 year.

Yes, tax was deducted and the interest paid net.   

Pennies of tax mind, fifty nine to be precise, but for those with a lot more held in their Cash Management account (outside the ISA), it could be troublesome.

Albermarle

Sea_Shell said:

Well, we've just received the Tax on Interest Statement from Fidelity for the 23/24 year.

Yes, tax was deducted and the interest paid net.   

Pennies of tax mind, fifty nine to be precise, but for those with a lot more held in their Cash Management account (outside the ISA), it could be troublesome.

I just checked mine.

I was paid 8p in interest for cash in the cash management account ( nothing in it for the last few months) and no tax taken.

Strange that you are paying tax....

Sea_Shell

Albermarle said:

Sea_Shell said:

Well, we've just received the Tax on Interest Statement from Fidelity for the 23/24 year.

Yes, tax was deducted and the interest paid net.   

Pennies of tax mind, fifty nine to be precise, but for those with a lot more held in their Cash Management account (outside the ISA), it could be troublesome.

I just checked mine.

I was paid 8p in interest for cash in the cash management account ( nothing in it for the last few months) and no tax taken.

Strange that you are paying tax....

Was that in total for the year or for one month?    DH did have some months where interest was only one or two pence, so no tax deducted on those months.  

His lowest "taxed" month was 22p gross, tax of 4p deducted. 

Anything under 5p gross in any given month probably wouldn't have any deductions.

Albermarle

It was for whole of the last tax year.

Sea_Shell

Albermarle said:

It was for whole of the last tax year.

Did you opt for annual interest?

I have no idea why DH has had interest deducted.

enthusiasticsaver

My mum and I both hold Fidelity investment portfolios.  Mine is purely ISAs so tax free but hers is partly ISAs and part OEICs and that has had tax deducted on cash held in investment account. 

tigerspill

Just looked at my Fidelity tax statement - tax has been taken from the interest.

Albermarle

tigerspill said:

Just looked at my Fidelity tax statement - tax has been taken from the interest.

Presumably that cash was being held outside an ISA/SIPP?

Albermarle

Sea_Shell said:

Albermarle said:

It was for whole of the last tax year.

Did you opt for annual interest?

I have no idea why DH has had interest deducted.

I did not opt for anything. As it is only the cash management account, I never gave it a moments thought until I saw your posts !

Sea_Shell

Albermarle said:

Sea_Shell said:

Albermarle said:

It was for whole of the last tax year.

Did you opt for annual interest?

I have no idea why DH has had interest deducted.

I did not opt for anything. As it is only the cash management account, I never gave it a moments thought until I saw your posts !

They probably paid you less than 1p a month, if you only got 8p for the year.  So they wouldn't have deducted any tax each month.

Like I said, any gross interest under 5p a month wouldn't be taxed.   As they don't seem to do fractions of pence.

So you could theoretically have earned up to 60p annually and still not had tax deducted.

But, if that 60p was earned in one month, they would have taken 12p tax off.

....I think 😉