Basic question re proposed 22% tax on Stocks and Shares ISA's

weezie7

Update: I have spoken to HSBC who assure me that, although I get a quarterly income from my S+S ISA, it goes briefly into a 'uninvested cash account', where it is quickly paid out to me……….but that is NOT going to be taxed!

I am not sure I believe them though!

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/82072348#Comment_82072348

Well, it's pretty easy to tell. Just look at the interest that you've paid over the last year on provider/platform cash. If you've received interest, it will be taxed. If you haven't received interest, it won't be taxed.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82072348#Comment_82072348

Why not?

If you don't believe your ISA provider, MSE, the government, the well-informed forum posters, etc, it does rather beg the question of who would you believe?!

InvesterJones

https://forums.moneysavingexpert.com/discussion/comment/82072348#Comment_82072348

What interest does this uninvested cash account pay?

weezie7

InvestorJones - no idea, as money doesn't stay in it for long! Never seen a mention of it anywhere.

eskbanker - reason I am sceptical, is that the person I spoke to, had to consult someone else and wasn't sure about it all!!

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82072677#Comment_82072677

To be fair, there isn't much reason for HSBC employees to be particularly well informed about future (and as yet draft) regulatory changes, so I'd expect them to be able to inform you whether or not your account pays any interest, but not to have a definitive answer regarding the likely consequences of that next year…

phlebas192

https://forums.moneysavingexpert.com/discussion/comment/82072677#Comment_82072677

As far as I can see, HSBC don't pay interest on uninvested cash accounts. So obviously a tax on said interest will not have any impact on you.

weezie7

Thanks for all the replies so far, will keep an eye on it and post if there are any updates!

weezie7

Update today. Just spoken again to HSBC, as the account is 'uninvested cash', which earns no interest, there will be no tax to pay on it, even if there is money in it. Sounds clear. Am happier having had it confirmed and now I understand! Thanks to all who replied to me previosuly.