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 "Investments, Interest and Dividends" presents both Income and Expenses groups: Interest and Dividends as income, and Investments as expenses.
- Interest: the net amount and tax deducted (if applicable)
- Dividends: the amount without tax credit,
- select if you have received stock instead of money
- select the source as a UK Investment Trust or Non-UK Organisation
- 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:
- interest or dividends or bonuses from tax exempt investments (for example, ISAs and National Savings & Investments Savings Certificates)
- interest and terminal bonuses from Save As You Earn schemes
- Premium Bond, National Lottery and gambling prize winnings
- interest awarded by a UK court as part of an award of damages for personal injury or death
- interest from Ulster Savings Certificates (if you usually live in Northern Ireland and lived there when you bought the certificates or when they were repaid)
- Adoption Allowances paid under the provisions of the Adoption Allowance Regulation 1991 or schemes approved by the Secretary of State for Scotland under Section 51 Adoption (Scotland) Act 1988.
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