Is tax due on the interest earned through Octopus Choice?

Yes, as with other savings and investment products, the interest your client earns through Octopus Choice is paid gross of tax. They may have to report it to HMRC at the end of each financial year and pay tax on it.

However, it’s worth remembering that basic rate taxpayers are entitled to earn £1,000 of interest tax free each year (£500 for higher rate and, unfortunately, nothing for additional rate). Remember that tax treatment depends on the individual's circumstances and may be subject to change.

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