Fidelity - taxing interest outside ISA?

Dh6

Fidelity are also doing the same with my cash balance. Taxing me on the interest, again it’s pennies but nevertheless doesn’t seem right. I hold a relatively small amount to pay fees as a lot of people do.
DH

Hoenir

Dh6 said:

 Taxing me on the interest, again it’s pennies but nevertheless doesn’t seem right. 

The principle is correct though. Fidelity aren't going to want to be fined for non compliance

118-050 The duty to deduct tax on yearly interest

The duty to deduct tax from payments of yearly interest applies only where it is paid by:

•a company;

•a local authority;

•a partnership which has a company as one of its members (or paid by another person on behalf of such a partnership; or

•any person to a recipient who usually lives outside the UK,

and where that interest ‘arises’ in the UK.