Almost all income obtained through interest or dividends must enter your Tax Return and most investments are entitled to tax relief.
Annual investment statements may show three amounts: ‘gross interest’, ‘tax deducted’ and ‘net interest’.
You must include in your return the interest generated by bank, building society and other savings accounts, and on loans, unless it is specifically non-taxable (a list of non-taxable income below*). Interest, dividends or bonuses from tax exempt investments such as ISAs are excluded and you do not need to include them.
On SimpleTax this process is quick and easy. A page for "Savings & Investments" presents both Income and Expenses groups: Interest and Dividends as income, and Investments as expenses.
Income
- Interest: the net amount and tax deducted (if applicable)
- Dividends
Expenses
- Enterprise Investment Scheme (EIS): be aware that HMRC may ask you for your EIS3 or EIS5 certificate
- Community Investment Tax Relief (CITR) claimed: make sure you have received a tax relief certificate from CDFI (if you have not you cannot claim any relief)
- shares under the Seed Enterprise Investment Scheme (SEIS): be aware that HMRC may ask you for your SEIS3 certificate
---
Interest generated from sources below should not be included in your tax return:
other keywords: share, saving, gains, funds