Ok yes, credits meaning paid in to the deposit account. Not paid out from the deposit account to your current account.The sentence quoted would be correct if you substituted "credits" for "pays"
Correct. In that case no interest was credited or paid in 2023 so there is no liability in that year. The full amount of interest is liable in 2024.So just to clarify one of my Raisin ( BFF bank) accounts was opened in October 2023 for a 3 month term. It paid interest ( not subject to withholding tax) on January 2024. I have no record or statement of accrued interest yet unpaid between October 2023 and 31/12/23.
Should I put the full interest in the 2024 tax return?
Thanks for clarifying. I will deal with that interest next year ( 2024 tax return). We're talking about hundreds not thousands, tens of thousands or huge sums. All short term deposits 3 months or less. I doubt the Revenue would penalise me if I were to declare relatively small interest in 2024 tax year if others say it should be 2023 tax year provided I fully declared it.Correct. In that case no interest was credited or paid in 2023 so there is no liability in that year. The full amount of interest is liable in 2024.
Very organized.I'll stick my neck out here by putting up two examples. One where interest is credited annually and the other where interest is credited at the end of the term. Both examples are a 3 year term deposit started in 1st July 2023:
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I have term accounts with Raisin (YouNited) and AIB and both operate on the basis of Example A. I have a number of other Term Deposits (PTSB, BOI and other Raisin Banks) however these are more recent so I am not yet sure how they operate where interest is concerned and the documentation is less than clear. It may appear unfair that you are liable for the DIRT on interest amounts credited when they cannot be accessed.
On any demand or term accounts of one year or less it is almost always the case that the interest is liable for tax in the year it is paid. (Apart from that PTSB "Interest First" yoke)