Pensioner Bonds Guide

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  • colsten
    colsten Posts: 17,597 Forumite
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    Paul Lewis (of Radio 4 Moneybox fame) tweeted
    NS&I confirms: interest on 65+ bonds due from 6/4/2016 will not have tax deducted but interest due before that date will have 20% deducted

    Apparently NS&I website will be updated soon to say so.
  • I-LOV-MONEY
    I-LOV-MONEY Posts: 1,267 Forumite
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    colsten wrote: »
    Apparently NS&I website will be updated soon to say so.

    Let me just clarify this (in my own tiny brain!).

    If any one year bond is due to pay out after 6 April 2016 then it will be paid gross (but presumably we will still have to declare it :sad: )
    Thank you for reading this message.
  • colsten
    colsten Posts: 17,597 Forumite
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    I-LOV-MONEY wrote: »
    Let me just clarify this (in my own tiny brain!).

    If any one year bond is due to pay out after 6 April 2016 then it will be paid gross (but presumably we will still have to declare it :sad: )

    From April 2016, you'll only have to declare it if you get more than £1,000 in annual savings interest (that's for BR tax payers - it's £500 for higher rate payers, and £0 for advanced).

    Details will become clearer next year.
  • I-LOV-MONEY
    I-LOV-MONEY Posts: 1,267 Forumite
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    colsten wrote: »

    Details will become clearer next year.

    I hope so !
    Thank you for reading this message.
  • billywilly
    billywilly Posts: 468 Forumite
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    stingy1 wrote: »
    Well I don't think my old man is defrauding anyone, since I just made up the example to see if it was possible, I don't even have parents sadly anymore.

    I only asked since I read the MSE pensioner bonds article and it kinda suggest and ill quote the article

    "But, technically, you could give the money to your parent/grandparent as a 'no-strings' gift"

    Sounds a bit fraud to me ?

    In fact the whole pensioner bond sounds suspicious to me, they say 10K max how many oap maybe getting pension credit or other benefits or more then 20-30K savings and op in for 1 or 2 pension bonds. Sounds like a fish net for pensioners !

    Quite a few I would think.
    Being on GPC and having an AIP there is nothing stopping them holding millions AND still get their full GPC payments.

    We receive GPC and have approx £12k in the current account/savings account, £10K in a 4 year 65+ bond as well as gifting another £85k into a trust for the children.

    By the time the AIP is reviewed the £12k will have been spent on updating our home, leaving just the £10k which is the limit. The trust has nothing to do with us as we cannot access any of the capital or income.
  • I-LOV-MONEY
    I-LOV-MONEY Posts: 1,267 Forumite
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    GPC AIP ???? Sorry, you have lost me there :o
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  • Steve_xx
    Steve_xx Posts: 6,976 Forumite
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    I-LOV-MONEY wrote: »
    GPC AIP ???? Sorry, you have lost me there :o
    Me too! I still have the BBC and ITV.
  • cloudydays
    cloudydays Posts: 160 Forumite
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    I-LOV-MONEY wrote: »
    GPC AIP ???? Sorry, you have lost me there :o

    GPC is Guaranteed Pension Credit
    AIP is Assessed Income Period during which changes in circumstances don't need to be reported.
  • colsten
    colsten Posts: 17,597 Forumite
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    billywilly wrote: »
    ...... as well as gifting another £85k into a trust for the children....... The trust has nothing to do with us as we cannot access any of the capital or income.

    Careful, that could be seen as deprivation of assets at some stage
    http://www.which.co.uk/elderly-care/financing-care/gifting-assets/343063-what-are-the-rules-for-gifting-assets
  • Steve_xx
    Steve_xx Posts: 6,976 Forumite
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    colsten wrote: »
    Careful, that could be seen as deprivation of assets at some stage
    http://www.which.co.uk/elderly-care/financing-care/gifting-assets/343063-what-are-the-rules-for-gifting-assets



    An interesting point. Though one wonders how far they would look back for a disposal. Also, your link says there's no specific time period that they can look back on for a disposal but at a guess I'd say that here the seven year rule would figure in this. I reckon there has to be some stopping point.
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