Self Assessment & duplication of tax on savings

ljayljay

Just as background information -

During 23/24, 24/25, 25/26 I received savings interest in excess of £1K that I am now repaying via tax code change for this 25/26 TY. The 23/24 calculation is accurate, however, they have also used 23/24 to estimate my potential interest for 24/25 & 25/26. Although I also received in excess of £1K in both of these later years the amounts are less than 23/24. I assume that HMRC will adjust once they have the accurate data.

Now to my question -

I have just completed a self-assessment for 24/25 in order to pay a CGT liability. On this self-assessment, I also declared my savings interest for 24/25 & this underpayment of tax was added to my CGT. In effect I have now paid tax twice on the savings interest for 24/25. Will the HMRC systems at some stage recognise this duplication? If so I will just wait for my tax code to be amended.

eskbanker

If you have some PAYE deductions in 2025/26 that stem from an assumption that you'd have earned more interest in 2024/25 than you actually did, that overpayment will be corrected after the end of the year, either automatically or via your eventual self-assessment if applicable.