​KembaraXtra- Financial Terms- accrued income scheme refers to a taxation arrangement in the United Kingdom that applies to the disposal of interest-bearing securities. Its purpose is to prevent the avoidance of income tax on accrued interest.


Under this scheme, the interest that has built up between the last interest payment date and the date of disposal is treated, for tax purposes, as income earned by the transferor.


The person acquiring the security, known as the transferee, is allowed to deduct this accrued amount from taxable income. This ensures that the correct taxpayer is charged on the interest earned.


The scheme generally does not apply to non-residents or to transfers carried out as part of a trade. Certain exemptions are also available to individuals under specific holding limits.


For spouses or civil partners, holdings may be treated jointly when determining exemption eligibility. The scheme helps maintain fairness and consistency within the taxation of investment income.