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Halifax 'Guaranteed Growth Bond'
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Milarky
Posts: 6,356 Forumite
Got an email about this, but can someone clear this up please?
It appears to pay 3.68% [equivalent to 4.6% gross for a basic rate taxpayer] after 12 months. BUT the 'tax' is paid in advance and is NOT recoverable [unlike bank building society interest on savings for non/10% taxpayers] So what's the 'angle' then?
Does the payment of 3.68pc count as a 'captial gain' rather than income or is it more like a 'dividend' on which the 'tax credit' has been paid? In which case what would the 'income' be declared at for tax purposes?
It appears to pay 3.68% [equivalent to 4.6% gross for a basic rate taxpayer] after 12 months. BUT the 'tax' is paid in advance and is NOT recoverable [unlike bank building society interest on savings for non/10% taxpayers] So what's the 'angle' then?
Does the payment of 3.68pc count as a 'captial gain' rather than income or is it more like a 'dividend' on which the 'tax credit' has been paid? In which case what would the 'income' be declared at for tax purposes?
.....under construction.... COVID is a [discontinued] scam
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Anyone know?.....under construction.... COVID is a [discontinued] scam0
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My guess is that the Halifax Bank knows the answer to your question.
Miss out the middlemen.
Ask them................................I have put my clock back....... Kcolc ym0 -
It is a single premium life assurance policy. So comes under the life assurance tax wrapper rules.
Basically, quite poor for non rate or lower rate tax payers. Indeed, its quite poor all round with perhaps an exception for those higher rate tax payers who know they will be basic rate taxpayers in the tax year of maturity. With no guarantee of "roll-over" to defer the tax liability any further, it isn't that desirable for higher rate tax payers either. The ability to roll-over a maturing life plan is really a must have for a higher rate tax payer.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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