GIA uninvested cash interest tax

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1

Hi, Iā€™m filling my UK taxes and Iā€™m wondering if the money received from T212 uninvested cash in its Invest (GIA) account counts as ā€œinterestā€ in regards to HMRCā€™s savings allowance definition, or is it seen as income?

Because the ā€œinterestā€ is coming from MMFs, and T212 is not a bank, do they payments apply to to HMRCā€™s list of sources of interest?

  • bank and building society accounts
  • savings and credit union accounts
  • unit trusts, investment trusts and open-ended investment companies
  • peer-to-peer lending
  • trust funds
  • payment protection insurance (PPI)
  • government or company bonds
  • life annuity payments
  • some life insurance contracts
2 Likes
2

Hi,

Did you find an answer to this? I was also wondering the same thing.

3

Iā€™m going to work under the assumption it meets the definition of HMRCā€™s ā€˜interestā€™ until someone can say otherwise

4

All MMF, bonds and cash accounts/funds will be interest.

Therefore any Investment Trust, Open Ended Fund, ETF etc. that is composed solely of bond, cash, debt etc. and is outside of a tax wrapper will be also liable to interest rather than dividend tax, regardless of the platform it is held on.

However, in the case of mixed Investment Trusts, Funds, ETFs etc. where the percentage of bonds/cash like instruments is no more than 60%, then they would still qualify for dividend tax, rather than tax on interest.

For example: -
Personal Assets Trust = Dividend Tax
Vanguard Life-Strategy 20% Equity = Interest
Vanguard Life-Strategy 40% Equity = Dividend Tax

5

Thanks I think that answers it well