Tax year of interest payment to a current account from a Fixed Rate saver

What_time_is_it

Hi there.

For tax purposes, which tax year would an interest payment to a separate current account from a Fixed Rate (no access) saver be classed in?

The account matures in May 2025. I cannot make any withdrawals from the account until then, so I cannot access the account during this tax year. There was an interest payment on December 31st 2024 to a different account which is a current account. Would that interest payment count as 2004/25 or 2025/26 for tax purposes?

Thanks

refluxer

The interest will be liable for tax In the tax year in which it is paid out, so 2024-25.

wmb194

What_time_is_it said:

Hi there.

For tax purposes, which tax year would an interest payment to a separate current account from a Fixed Rate (no access) saver be classed in?

The account matures in May 2025. I cannot make any withdrawals from the account until then, so I cannot access the account during this tax year. There was an interest payment on December 31st 2024 to a different account which is a current account. Would that interest payment count as 2004/25 or 2025/26 for tax purposes?

Thanks

So the interest was paid away to another account and therefore you have access to the interest. That would be 24/25, then.

What_time_is_it

Thanks. I was 90% certain that was the case, but a little anxious because of the Fixed Rate/no access nature of the savings account.

The final interest payment will be made in May 2025 to cover the period Jan-May 2025. So that will be classed as being in the tax year 2025/26, right?

droopsnoot

Yes, payment received between April 6th 2025 and April 5th 2026 is the 2025-2026 tax year.