Interest Income on Invest Account and CFD Account
What does this apply to?
If you opt-in to receive interest on your uninvested cash, Trading 212 may invest part of your cash in deposits with third-party banks or Qualifying Money Market Funds (QMMFs). A portion of the return from these investments is then passed on to you as an “Interest Income”.
❗️ Important
This FAQ applies to our Invest and CFD accounts for UK tax residents. It does not apply to our Stocks and Shares ISA or Cash ISA account.
Will this income be treated as interest for tax purposes?
Yes. Based on our current understanding, the interest income paid to you should be treated as interest income for UK tax purposes. This applies whether T212 invests in QMMFs that pay out distributions (“distributing shares”) or QMMFs that automatically reinvest returns (“accumulating shares”).
Does this affect how I report my taxable income?
As with any interest you earn, you remain responsible for reporting it correctly on your personal tax return, if required. T212 is not responsible for providing tax advice specific to your personal circumstances.
Interest Income on Stocks and Shares ISA
What does this apply to?
If you opt-in to receive interest on your uninvested cash, Trading 212 may invest part of your cash in deposits with third-party banks or Qualifying Money Market Funds (QMMFs). A portion of the return from these investments is then passed on to you as an “Interest Income”.
❗️ Important
This FAQ applies to our Stocks and Shares ISA product for UK tax residents. It does not apply to our Cash ISA account, Invest Account or CFD Account.
Will this income be treated as interest for tax purposes?
No. As long as you stay within your annual ISA limit any interest income paid to you is tax-free.
Does this affect how I report my taxable income?
Any interest income you earn within your annual ISA limit is tax-free and does not need to be reported. However, you remain responsible for reporting your personal tax return correctly. T212 is not responsible for providing tax advice specific to your personal circumstances.
Interest Income on Cash ISA
What does this apply to?
If you open a Cash ISA Account, Trading 212 will invest your cash in deposits with third-party banks. A portion of the return from these investments is then passed on to you as an “Interest Income”.
❗️ Important
This FAQ applies to our Cash ISA account for UK tax residents. It does not apply to our Stocks and Shares ISA account, Invest Account or CFD Account.
Will this income be treated as interest for tax purposes?
No. As long as you stay within your annual ISA limit any interest income paid to you is tax-free.
Does this affect how I report my taxable income?
Any interest income you earn within your annual ISA limit is tax-free and does not need to be reported. However, you remain responsible for reporting your personal tax return correctly. T212 is not responsible for providing tax advice specific to your personal circumstances.
❗️ Important
The above information is guidance only. It is not legal or tax advice, and you should consult a professional for personalized recommendations.