Bond accrued interest taxation question

SnowMan

The example makes it clear also

8.1 Example 3

A bond issued by a company pays interest on 31 March, 30 June, 30 September and 31 December each year. You sell part of your holding of the bond on 2 October 2023. The next payment of interest after the sale falls due on 31 December 2023. The accrued income profit from this sale arises in the tax year 2023 to 2024.
You sell the rest of your holding on 3 April 2024. The next interest payment after this sale falls due on 30 June 2024, which is in the tax year 2024 to 2025. You must include the accrued income profit from this transfer in your calculation for 2024 to 2025 and not for the earlier tax year.

DRS1

I do wonder how HMRC would even know if you put the figures in the wrong tax year.

GeoffTF

DRS1 said:

I do wonder how HMRC would even know if you put the figures in the wrong tax year.

They may well have a computer program to check.

masonic

Platforms that are issuing the contract notes would be capable of reporting the information as they do for other investment income. Whether or not they do in practice I don't know.

It's possible for them to include it in the CTC, although perhaps that's too big an ask.

itwasntme001

masonic said:

Platforms that are issuing the contract notes would be capable of reporting the information as they do for other investment income. Whether or not they do in practice I don't know.

It's possible for them to include it in the CTC, although perhaps that's too big an ask.

I am with AJB and their CTC includes accrued interest.  They included bond 1 and bond accrued interest for 24/25 which was one of the reasons for my original question.

AJB CTC is actually pretty good.  Has the capital gains included as well.  All seems accurate.

DRS1

Just had a look at my HL tax certificate for 24/5 - no mention of accrued interest for the gilts I bought during the year (and they did not just deduct it from the interest received on those gilts during the year)