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Savings and
Investment
income
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In the months
following April 5, you should start receiving certificates of interest and
tax paid from banks, building societies and deposit takers with whom you
held an account during the tax year just ended.
Please keep these certificates safe. When you have collected them all, please
deliver copies for our attention.
If you have invested in quoted shares, then you should receive dividend
certificates and perhaps the occasional script issue notice. Once again
please keep them safe and send them on to us at the end of the tax year.
Do the same for the paperwork connected with any investments you acquire,
or dispose of during the year, including quoted or unquoted shares.
You are required to disclose income in your tax
return, from the following sources:
Interest from UK banks, building societies or deposit takers
Interest distributions from UK authorised unit trusts or UK open-ended
investment companies.
First Option Bonds and Fixed Rate Savings Bonds.
Interest from National Savings (except those listed below).
Other savings and investment income, including purchased life annuities
and relevant discounted securities.
Dividends from UK companies, UK authorised unit trusts or UK open-ended
investment companies.
Other distributions.
UK script dividends.
Any interest, dividends, bonuses and other income from an invalid
or voided Tax Exempt Special Savings Account (TESSA), Personal Equity
Plan (PEP) or Individual Savings Account (ISA) - You will be advised
by the provider of the income you need to disclose.
Income arising from a bare trust.
Accrued income on the transfer of securities.
Special cases:
Income from gifts made to your daughter or son who is under the age of 18,
which produce more than £100 gross income in a tax year, is assessable
on you, and should be disclosed as savings income.
Note: Any income or benefit you receive arising from the merger of two or
more building societies, a conversion of a building society to a company,
or a take over of a building society by a company, may give rise to a charge
to income tax or capital gains tax or both. Please advise us of any receipts
in this respect.
You do not need to disclose in your tax return, income arising from the
following sources:
Premium Bond, National Lottery and gambling prizes.
Interest, dividends, and bonuses from Tax Exempt Special Savings Accounts
(TESSA) unless your TESSA was closed before the five years were up.
Interest, dividends and bonuses from an Individual Savings Account
(ISA).
Dividends and other income from a Personal Equity Plan (PEP), or interest
paid on cash held in a PEP unless you withdrew more than £180
interest.
Interest and terminal bonuses under a Save As You Earn scheme.
The first £70 of interest from a National Savings Ordinary
Account.
Accumulated interest on National Savings Certificates, including index-linked
certificates.
Interest on National Savings Children's Bonus Bonds.
Interest on Ulster Savings Certificates (if you normally live in Northern
Ireland and lived there when you bought the certificates, or when they
were repaid).
Interest awarded by a UK court as part of an award for damages, personal
injury or death.
Dividends on ordinary shares in a Venture Capital Trust, where the
shares are within the limit of £100,000 acquired per tax year.
Adoption allowances paid under the provision of the Adoption Allowance
Regulations 1991.
If you are a trustee, untaxed interest paid direct by the payer acting
through your authority, to beneficiaries who are entitled under trust
to income as it arises.
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