Declaring interest on fixed term savings accounts (non ISA)

Cabbage_white

My partner and I both had identical one year savings accounts with MBNA starting in March 2024. Mine ended in March 2025 and my interest will be declared in my next tax return. However, my partner opted to 'renew/extend' his savings account so the interest accrued became part of the new  principal amount saved. Our question is this - Should he declare the interest earned in 2024-2025 or should he wait and declare the final interest once the new savings account matures in March 2026? Would be good to know to keep the taxman happy! Thanks in advance. 

masonic

The interest arose for tax when it became available to withdraw, whether or not it was actually withdrawn. This is different to a multi year fix where there is a contractual agreement at the start for interest to accumulate.

Hoenir

Cabbage_white said:

 However, my partner opted to 'renew/extend' his savings account so the interest accrued became part of the new  principal amount saved. 

The interest wasn't accrued it was paid to the account then rolled over into a new term. Be taxable in 24/25. 

Albermarle

Most people do not need to declare interest earned. HMRC are informed by the savings providers some time after the tax year ends and will take that into account when calculating any tax liablity.
You only need to declare the interest if;
1) It amounts to more than £10K
2) If you fill in a self assessment for other reasons.