SA: co-op credit union 'dividends' = interest?
Posted: May 8th, 2022, 2:15 pm
(still a LF noob so no urls in my query below sorry)
I'm doing a SA for the first time (21-2 year) and have got side tracked by some minutiae
HMRC says:
Tax on savings interest
Your [personal] allowance applies to interest from: [...]
- savings and credit union accounts
Co-op credit union says:
"All savings held in the credit union attract a dividend. The dividend rate is paid based on the credit union’s financial performance and market conditions. It is not agreed in advance, but proposed and voted on at the AGM every January. In 2021, the credit union paid 0.25% and in 2020 paid 1% and we always aim to pay as much as we can reasonably afford to."
Do co-op credit union 'dividends' = interest, in the eyes of HMRC? Or are credit union 'dividends' equivalent to the dividends from listed & traded company/ETF shares
googling turns up conflicting answers & nothing in HMRC customer forum, I'm awaiting a response from co-op and thought I'd seek the collective wisdom of LF
The amount is tiny but I'd still prefer to get it in the correct part of my 1st SA
Thanks,
Gpadsa
I'm doing a SA for the first time (21-2 year) and have got side tracked by some minutiae
HMRC says:
Tax on savings interest
Your [personal] allowance applies to interest from: [...]
- savings and credit union accounts
Co-op credit union says:
"All savings held in the credit union attract a dividend. The dividend rate is paid based on the credit union’s financial performance and market conditions. It is not agreed in advance, but proposed and voted on at the AGM every January. In 2021, the credit union paid 0.25% and in 2020 paid 1% and we always aim to pay as much as we can reasonably afford to."
Do co-op credit union 'dividends' = interest, in the eyes of HMRC? Or are credit union 'dividends' equivalent to the dividends from listed & traded company/ETF shares
googling turns up conflicting answers & nothing in HMRC customer forum, I'm awaiting a response from co-op and thought I'd seek the collective wisdom of LF
The amount is tiny but I'd still prefer to get it in the correct part of my 1st SA
Thanks,
Gpadsa