Personal Savings Allowance guide
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If you received the interest before 6th April 2016 you can reclaim the tax paid by submitting Form R40 to HMRC, if you qualified for tax-free interest at that time.HMRC have formally told me I don't need to make tax returns. My income hasn't changed although I vary the investments. I have an NS&I 3 year bond and just received the statement with tax deducted. Could anyone tell me how I recover this - and any others where the same might apply, please ?0 -
I seem to be unable to find a clear answer to this:
If I have a 5-year interest paid on maturity account, will I be able to reclaim my £1000 PSA for each year when I get it all paid up in year 5?
Thanking you in advance.0 -
There is nothing to reclaim as any interest since April 6 2016 will have been paid gross. If anything, you might have to declare extra income if your interest payments in any one year went above £1,000.If I have a 5-year interest paid on maturity account, will I be able to reclaim my £1000 PSA for each year when I get it all paid up in year 5?0 -
If I understand the whole thing correctly (and I may not) then I believe you are subject to any tax owed in the year that the interest is paid - not when it may have been earned. In your case, this would mean that all interest was paid in the same year so the previous years' allowances would count for nought against this particular savings account.I seem to be unable to find a clear answer to this:
If I have a 5-year interest paid on maturity account, will I be able to reclaim my £1000 PSA for each year when I get it all paid up in year 5?
Thanking you in advance.
I'm sure someone will be along to correct me if this is wrong.0 -
zolablue25 wrote: »If I understand the whole thing correctly (and I may not) then I believe you are subject to any tax owed in the year that the interest is paid - not when it may have been earned. In your case, this would mean that all interest was paid in the same year so the previous years' allowances would count for nought against this particular savings account.
I'm sure someone will be along to correct me if this is wrong.
No correction required - you understand the situation correctly.0 -
I seem to be unable to find a clear answer to this:
If I have a 5-year interest paid on maturity account, will I be able to reclaim my £1000 PSA for each year when I get it all paid up in year 5?
I've interpreted your question somewhat differently from the other respondents. If I've got it wrong - ignore the following.
As I understand it, if no interest is available to you until the maturity, you will not be able to carry forward any unused SPA from earlier years - you'll just have the SPA for the year in which the interest is deemed to be paid. You need to study the terms and conditions of your particular account. If there is any provision to make partial withdrawals then you might be able to argue that you had the ability to enjoy (HMRC's term) the annual interest annually - and so be able to spread the taxation of the interest across previous years of SPA.0 -
An interesting position to take but...I've interpreted your question somewhat differently from the other respondents. If I've got it wrong - ignore the following.
As I understand it, if no interest is available to you until the maturity, you will not be able to carry forward any unused SPA from earlier years - you'll just have the SPA for the year in which the interest is deemed to be paid. You need to study the terms and conditions of your particular account. If there is any provision to make partial withdrawals then you might be able to argue that you had the ability to enjoy (HMRC's term) the annual interest annually - and so be able to spread the taxation of the interest across previous years of SPA.
I can't see how that would fly with HMRC because although you COULD have closed the account early and enjoyed the interest at some time in previous tax years, you didn't therefore no tax liability arose in the earlier tax years so nothing could be set against any allowance in that year.
As pollymaff knows, it is of course very different if interest is credited to the account annually (or monthly) then even though it is in an account that you can't withdraw from without penalty you ARE enjoying that interest. So that would become liable to tax at that time and could be set against that year's allowances.0 -
An interesting position to take but...
I can't see how that would fly with HMRC because although you COULD have closed the account early and enjoyed the interest at some time in previous tax years, you didn't therefore no tax liability arose in the earlier tax years so nothing could be set against any allowance in that year.
I'm basing this suggestion upon the proposed treatment of the NS&I 3-year 65+ bonds, LX.
Mind you, there, holders of the bonds are screaming "So I'll have to find the tax each year even though I don't intend to take anything out until the maturity - NOT FAIR!!!!"
You can't please all of the people all of the time! :rotfl:0 -
Im new and i need some advice, i have a couple of k savings, and i save 25 quid a week and whatever is left at the end of the month, single non home owner, whats the best thing to do with my money? Id like to open a Halifax help to buy isa but i can only put so much in, what to do with the rest? Help please
:j0 -
I thought that it depended on when the interest was credited, even if you did not withdraw it and let it compound. So if the account said so much interest per year, but you cannot withdraw for X years, then each interest counted towards that tax year?
However if the fixed term has terms that interest was not credited until the year of completion then obviously it all counts in that tax year?0
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