Trading 212 interest on qmmf's taxation query

Aidanmc

On Trading 212 i have a small holding in the Invest account and have enabled interest so my cash can be invested in QMMF's.

Some times 100% of the cash is allocated to QMMF's whereas others is split up between banks and QMMF.

The interest earned on the QMMF would be declared on tax return as foreign interest as the qmmf is offshore?

And the interest earned in the portion in banks would be declared as untaxed UK Interest?

Only thing is 212 doesnt say how much interest was gained in each?

 

MiserlyMartin

Hi did you ever find an answer to this? My assumption is that when you get your end of tax year statement from T212, it will tell you how much was interest from banks and how much was from the QMMF. At least I hope so!

I also have questions.

Which country is the EURO interest invested in? I have asked T212 in their chat but they are rather slow to respond and don't always answer your question. You may need to declare it as foreign income?

I understand that QMMF interest is treated as taxable income, but what about when you turn off interest or withdraw money from the account and the money is 'sold' from the QMMF, is it treated as a capital gain, like wise interest is?

Edit: Having looked online I found this. "On the T212 forum and on Reddit, many people, are saying that this is not taxed as an investment but rather taxed as deposit interest. The reason is that, unlike Plum (and Wise UK) - you are not the personal owner of a stake in a QMMF. i.e. as a poster on T212 puts it "It is the taxed as deposit interest. T212 are paying you interest. How they create the money to pay you that interest (such as put it in a money market fund) is their concern. You are not actually the owner of a personal stake in any specific money market fund, as you would be if you invested through Wise in shares of a Blackrock fund". i.e. even when T212 start the QMMF investment, you are not a personal owner of this stake and hence it is not treated as an investment."

So QMMF's are just straight forward interest, ie liable for income tax not CGT. Anyone agree with this?