Find general guidance about taxes when using Wise Interest or Stocks.
When you turn on Wise Interest or Stocks, you’re investing in units in a fund. You can see more information about the funds here.
If you’re a UK tax resident individual:
There are two types of tax you might become liable for when using Wise Interest or Stocks: capital gains tax and income tax.
Your tax year starts on 6th April and ends on 5th April.
To understand if you need to pay tax when you use Wise Interest or Stocks, you can request a tax statement that shows what income and capital gains you may need to report to HMRC (the UK tax authority). These statements are provided for guidance only and is not tax advice. Ultimately, you're responsible for making sure your tax return is correct.
Downloading your tax statement
You can request and download your tax statement by logging in to your Wise account:
Select your profile name
Select Statements and reports
Select Tax statements
It might take up to 10 days to create your tax statement, so make sure you request it ahead of time. The UK tax return filing deadline for those submitting tax returns online is 31 January, following the end of the previous tax year. If you have not previously submitted a tax return, but have income or capital gains to report, then you will need to register for self-assessment by 5 October, following the end of the relevant tax year.
Speak to your tax, legal or accounting advisor if you have any questions about your taxes or filing a return. Wise is not able to advise on your personal tax situation.
Capital Gains Tax
You may be liable to pay capital gains tax if you move money out of the currency you hold in Interest or Stocks — this can be through spending, sending, converting or simply moving money within Wise or to an external account. This will trigger Wise to sell units in the fund(s), known as disposing.
You likely won’t need to pay any capital gains tax in this scenario if your gains fall within your Capital Gains tax-free allowance. If your total capital gains exceed this allowance, which includes gains from other investments (not just Wise), the gains would be subject to capital gains tax.
Income Tax — Excess Reportable Income
In the UK, you may need to pay income tax on something known as Excess Reportable Income (ERI). We’ll calculate your ERI for you and you can find it in your tax statement under 'Interest and Income from overseas savings' and 'Dividends from foreign companies'.
What is ERI?
Wise Interest and Stocks use some offshore funds. These funds reinvest the income they generate back into the fund, instead of paying it out to you as cash. Whilst your number of shares stays the same, the income reinvested by the fund counts as Excess Reportable Income (ERI) and is treated as foreign income for UK tax purposes, even though you do not actually receive the income directly. This may result in a tax charge, depending on your personal circumstances (see below).
Do I need to pay tax on it?
Whether you need to pay tax on your ERI depends on your personal tax allowances. Remember that your personal savings allowance includes interest you’ve earned elsewhere, not just Wise. The dividend allowance is similarly based on your total dividend income, not just that from your Wise holdings.
You may have to pay tax if:
Your total interest and interest-based ERI exceeds your Personal Savings Allowance (tax-free limit for savings interest)
Your total dividends or dividend-based ERI exceeds your Dividend Allowance.
How is it calculated?
ERI is generally calculated based on your holdings on the fund year-end date. Your ERI is generally calculated using this equation:
Number of shares held on fund year-end date X Income per share = Taxable ERI
However, if you sell units before the fund’s year-end date and then buy units back within the next 30 days, they may still count as ERI under the UK tax rules.
You won’t be taxed twice
If ERI is taxed as income, you shouldn’t be taxed again on the same amount when you later sell your units (capital gains). This is because ERI is added to your ‘base cost’ for capital gains tax purposes, which could lower your capital gains tax liability when you come to sell your units.
If you are unsure how ERI affects you, you should check HMRC guidance for ERI or speak to a tax adviser.
Understanding if you need to file a UK tax return
If the capital gains and income you receive from using Wise Interest or Stocks and any other investments and savings is above your tax-free allowances (such as your capital gains, personal savings or dividend allowances, where relevant) then you will need to submit a self-assessment tax return. However, you could need to file a tax return, if you've earned foreign income (known as ERI) on your Wise Interest, even if it falls within your available tax-free allowances.
You can use HMRCs website to work out if you need to submit a tax return and here you can check how to register for Self-Assessment, if applicable.
Using your UK tax statement for Self-Assessment
Your UK tax statement contains a summary of the key figures intended to help you with UK tax reporting. The summary shows the gains and income from your Wise Interest and Stocks and guides you to which sections you may need to complete and which information to include.
If you need to report income and/or capital gains from Wise, you may need to complete:
1. The Foreign section of your tax statement
For foreign income (Excess Reported Income) from Wise Interest or Stocks.
If you see Interest and other income from overseas savings — this relates to your income from Wise Interest. HMRC guidance says that this should be reported in the Foreign section (SA106) of the tax return as ‘Interest and other income from overseas savings.
You can find the 'country or territory code' of the fund in the table called 'Interest and other income from overseas savings'.
There's no foreign tax taken off or paid on this income.
If you see Dividends from foreign companies — this relates to your income from Wise Stocks. HMRC guidance says that Excess Reported Income dividends should be reported in the Foreign Pages (SA106) of the tax return as ‘Dividends from foreign companies.
You can find the 'country or territory code' of the fund in the table called 'Dividends from foreign companies'
There's no foreign tax taken off or paid on this income.
Check the HMRC guidance for more information.
2. The Capital Gains section of your tax statement
If you have realised capital gains or losses from selling units in the funds:
number of disposals
disposal proceeds
allowable costs
gains in the year, before losses
losses in the year
This information could be used to complete the Capital gains summary (SA108) under Listed shares and securities.
You could attach your Wise tax statement to your self-assessment tax return to provide details of disposals of Wise Stocks or Interest to HMRC.
Your statement also includes detailed pages after the summary. These show the underlying income, capital gains, transaction history, purchases, sales, holdings and explanatory notes used to prepare the summary.
The summary and detailed pages only cover your Wise holdings. If you hold the same or similar investments elsewhere, or have other income or capital gains, you may need to take those into account separately.
Your Wise statement only addresses the expected tax implications of your Wise investments, and you will need to take account of your broader personal tax affairs when completing your personal tax return. If you are unsure, we would recommend you seek support from a tax advisor or accountant.
Other helpful information to understand about the information on your tax statement
The returns we show you in your Wise Account are likely different from the capital gains and income you see on your tax statement. The tax statement only shows your realised gains — which are generated when you sell units by sending, spending on your card or transferring money out of your account. The returns we show in your account are total returns, including those you haven't realised yet. Please use your tax statement as the point of reference for your tax return.
You may be taxable on ERI if you hold units at the fund reporting period end date (or sell and reacquire units within 30 days of the fund reporting period end date), even though you do not actually receive the income from the fund directly.
You might see losses in your tax statement (numbers in brackets), even if you're using Interest. This might be because you've moved money in and out of the account consistently, leading us to both sell and buy units on your behalf. The UK tax system has ’share matching’ and anti-avoidance rules that determine how capital gains should be calculated. These rules are accounted for in your tax statement, which could make it look like you've made a tax loss, even if you haven’t incurred actual losses.
The ERI is taken into consideration in the capital gain calculation, ensuring you aren't subject to double tax (it's treated as a deductible cost for capital gain tax purposes).
As outlined above, ERI can result in you being taxed on income which you don’t actually receive (i.e. interest/dividends automatically reinvested into the fund).
Wise doesn't withhold or pay any tax on your behalf when you use Stocks or Interest.
Your tax statement is provided for information purposes only. You remain personally responsible for getting your tax affairs correct and should seek support from a professional tax advisor or accountant if you are unsure of your tax position.
An example
Here’s a fictional example of how someone might become liable to pay both Capital Gains Tax and Income Tax when using Interest or Stocks.
Andrew uses Wise. He has some existing savings and investments outside his Wise account, so he's already over his personal savings and Capital Gains tax-free allowances. He turns on Interest for 11 300 GBP held in his Wise account on 1 May 2025. At the time of doing so, each unit in the fund costs 113 GBP, so 11,300 GBP buys 100 units.
By the period ending 30 September 2025 his share of ERI was 5 GBP per unit. That means he’s liable to pay Income Tax on 500 GBP of ERI (5 GBP) x 100 units). The 500 GBP of ERI would be taxed at the ordinary UK Income Tax rate, it also reduces the amount of Capital Gains he’ll owe by increasing the book cost of the units held by the same value of the ERI — you can see how this is calculated below.
On 31 December 2025 Andrew withdrew all of his money. Over the last year he hasn’t spent or sent any money and has gained 550 GBP on his initial 11,300 GBP. This is because each unit in the fund is worth 118.5 GBP by this date.
11 850 GBP - (11,300 GBP + 500 GBP ERI) means Andrew’s taxable gain is 50 GBP.
This 50 GBP gain is then taxed at the UK Capital Gains Tax rate.
As he’s already over his allowances, Andrew would need to declare this income and capital gains in his end of year tax return.
As well as government tax-free allowances, there may be other reliefs that are available to you which reduce your income and Capital Gains Tax liability. Speak to a legal advisor, accountant or tax advisor if you want to learn more.