If you have a fixed term savings account lets say 1 year starting November but you don't get the final interest until the following November, in which year is the interest deemed to accrue? Is it the year in which it's paid or should it be split between both tax years even if you don't actually get your hands on it till the end. Nick
The year in which it is received.
Bitstring , from the wonderful person NB said
I just declare it in the tax year in which I receive it. Until then 'it may never happen' (ask BCCI 's larger customers). That's the way the tax deduction statement (if you get one) reads too.
Rather curiously, for tax purposes it is irrelevant when the interest accrues, what matters is when it is paid (or credited to the account).
Your mention of "final" interest was a mistake, I presume, since it suggests that interest is also be credited at various other times.
Suppose the interest is paid four times a year, in the middle of February, May, August, and November, then the February payment would be taxed in
2009/10 and the other three payments in 2010/11. Of course if there is only a single payment, in November 2010, this is entirely taxed in 2010/11.BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.