Oxbury Bank - Months of Apparent Inadequacy

allegro120

masonic said:

allegro120 said:

masonic said:

allegro120 said:

nottsphil said:

Zopa_Trooper said:

I had a 90-day notice account with them for a few months, It closed yesterday when they paid me the full balance plus interest. I found them to be excellent in every respect. Speak as you find I say.

So in which tax year are you declaring the annual interest paid last year? If it's credited to the account, we are told that it should only be declared in this year because it wasn't accessible due to you not giving notice until c. 31st March!
Maybe it's dependent on the date that annual interest is credited to an account, so if credited on 31st January it's assessed in the current year but if credited a month later it belongs in the following year because it is not accessible for 90 days.

This account pays monthly interest, so any interest credited between 06/04/23 and 05/04/24 counts towards last tax year and anything after towards this tax year.

That's only correct if Oxbury permit instant access with a penalty, or interest is paid to an external account. If you must observe the 90 day notice period, then interest arises for tax 90 days after it is credited, except interest at closure which is accessible immediately.

They don't permit instant access with a penalty.  Interest is paid every month with reference to the date of receipt of first deposit and credited to the account.  For SAR, I've added all interest payments credited during the tax year.  Should I deduct the interest paid between 6th January and 5th April?

Yes, that would arise for tax in this tax year, being the earliest you could have accessed it.

I've received 2023/24 tax statement from Oxbury today.  The inaccessible part of interest is included in the total figure.  I guess this is what they will be reporting to HMRC. 

masonic

allegro120 said:

masonic said:

allegro120 said:

masonic said:

allegro120 said:

nottsphil said:

Zopa_Trooper said:

I had a 90-day notice account with them for a few months, It closed yesterday when they paid me the full balance plus interest. I found them to be excellent in every respect. Speak as you find I say.

So in which tax year are you declaring the annual interest paid last year? If it's credited to the account, we are told that it should only be declared in this year because it wasn't accessible due to you not giving notice until c. 31st March!
Maybe it's dependent on the date that annual interest is credited to an account, so if credited on 31st January it's assessed in the current year but if credited a month later it belongs in the following year because it is not accessible for 90 days.

This account pays monthly interest, so any interest credited between 06/04/23 and 05/04/24 counts towards last tax year and anything after towards this tax year.

That's only correct if Oxbury permit instant access with a penalty, or interest is paid to an external account. If you must observe the 90 day notice period, then interest arises for tax 90 days after it is credited, except interest at closure which is accessible immediately.

They don't permit instant access with a penalty.  Interest is paid every month with reference to the date of receipt of first deposit and credited to the account.  For SAR, I've added all interest payments credited during the tax year.  Should I deduct the interest paid between 6th January and 5th April?

Yes, that would arise for tax in this tax year, being the earliest you could have accessed it.

I've received 2023/24 tax statement from Oxbury today.  The inaccessible part of interest is included in the total figure.  I guess this is what they will be reporting to HMRC. 

Yes, just like for multi-year fixes where interest is credited but inaccessible, providers must return to HMRC all of the interest they credited to savers' accounts. Quite different to the responsibility of the taxpayer to declare interest on an arising basis (where they are required to make a declaration).

The primary purpose of the tax statement is to disclose the amount of tax deducted at source, because that figure needs to be deducted from a self-assessment tax calculation. Now defunct of course since deduction at source was scrapped, but previously some of that tax would be reclaimable.

The system was never designed for banks to credit inaccessible interest. It's rather strange that they do so.