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Savings Interest Payments Tax Question
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My partner and I have a joint NS&I account which contains the proceeds of a property sale. It's generating substantial interest payments into our joint current account. How is the tax on these interest amounts paid?
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For more on marking an answer as the "Best Answer", please visit our FAQ.If you are employed or receive a pension HMRC will collect the tax when they have been advised by the financial institutions how much interest you have paid. They will then estimate for the next year, and adjust it in yiour tax code.
If your interest is over £10,000 or you are self employed you will need to complete a tax return.
I have never had to complete a tax return.
If your interest is over £10,000 or you are self employed you will need to complete a tax return.
I have never had to complete a tax return.
Some time after the end of the Tax Year NS&I should send you a statement of interest accrued. Interest will have been paid gross of tax, I imagine they will send a similar statement to the Revenue. I believe you will both need to file a Self Assessment form, and that as the account is joint you will be able to split the Interest accrued equally on each form. You wil also need to declare other income from all sources. You will have the option on the form to decide if you wish any tax owed to be paid through the next years tax coding or to pay it as a lump sum, but possibly in two tranches, as is normal for people who need to file Self Assessment forms.. The Revenue will then send each of you a statement of tax paid and any liability.
"Congratulations on your successful property sale and the substantial interest payments it's generating for you and your partner! In terms of taxes, the interest income generated by your joint NS&I account will need to be reported on your tax return and may be subject to income tax.
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