Are switching incentives and other bank bonuses taxable?

0
0

Is a switching incentive paid by a bank for switching business account to them considered income and should tax be paid on it?

Marked as spam
Posted by al-fn (Questions: 36, Answers: 44)
Asked on 6 June 2020 11:58 am
238 views
0
Private answer

Under the Business Banking Switch, cash incentives are offered when companies switch their business current account from RBS/Williams & Glyn to another participating bank. It’s designed to increase competition in UK business banking and decrease RBS’s market share.

Switching incentives, i.e. amounts received when switching current accounts, are considered a discount by the HMRC rather than interest or income so they are not taxable.

However, monthly current account rewards could be taxable as income, depending on the way in which they are received. For example if they are considered “annual payments”.

Marked as spam
Posted by al-fn (Questions: 36, Answers: 44)
Answered on 6 June 2020 11:58 am
Votes
Answers
Views
Question
0
votes
1
answer
238
views
asked 1 month ago by al-fn