Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • dw3305
    • By dw3305 21st Apr 17, 12:30 PM
    • 13Posts
    • 3Thanks
    dw3305
    Tax on 3 year 65+ NSI Gtd Growth Bond.
    • #1
    • 21st Apr 17, 12:30 PM
    Tax on 3 year 65+ NSI Gtd Growth Bond. 21st Apr 17 at 12:30 PM
    I took one out on 6/4/15. I've always understood that interest is taxable in the year that it is credited, even if it can't be accessed till the end of the term. So I expected to have taxable income in 2016/17, 2017/18 and 2018/19 - all within my tax-free allowance.

    After a year I received a statement dated 7/4/16. It included Interest capitalisation on 6/4/16. It said that there was no interest earned for the 2015/16 tax year. So far so good.

    I've now received a statement dated 7/4/17. It includes another year's Interest capitalisation on 6/4/17. But it says that there was no interest earned on this bond for the 2016/17 tax year.

    Surely this is wrong. The income on this latest statement may not have been credited in 2016/17, but the income on the previous statement credited on 6/4/16 was.
Page 1
    • teddysmum
    • By teddysmum 21st Apr 17, 2:55 PM
    • 7,501 Posts
    • 4,436 Thanks
    teddysmum
    • #2
    • 21st Apr 17, 2:55 PM
    • #2
    • 21st Apr 17, 2:55 PM
    This doesn't make sense.


    We took ours out in March 2015, so had to pay tax on the first year's interest, though mine was reclaimable, because of income under the PA.


    This time, the interest is the full gross amount on the last statement's closing amount of £10,320.88. (Last year's capital +interest-tax at 20%).


    There is no mention of 'no interest'.


    Are you sure that you don't mean no tax on interest ?
    Last edited by teddysmum; 21-04-2017 at 3:10 PM.
    • Sceptic001
    • By Sceptic001 21st Apr 17, 4:56 PM
    • 1,099 Posts
    • 849 Thanks
    Sceptic001
    • #3
    • 21st Apr 17, 4:56 PM
    • #3
    • 21st Apr 17, 4:56 PM
    I've now received a statement dated 7/4/17. It includes another year's Interest capitalisation on 6/4/17. But it says that there was no interest earned on this bond for the 2016/17 tax year.

    Surely this is wrong. The income on this latest statement may not have been credited in 2016/17, but the income on the previous statement credited on 6/4/16 was.
    Originally posted by dw3305
    If you mean that the current balance is still the same as your initial investment (ie. no interest has been added) this is clearly wrong and you need to contact NS&I.

    Interest should be added annually on the anniversary of investment.

    A footnote on my statement clearly states the tax position:
    Interest earned for the 2016/17 tax year
    Total interest earned on this Bond: £xxx.xx
    The interest is taxable, but paid without any tax taken off. Basic rate taxpayers won't have to pay tax on the first £1,000 of interest they earn on their savings (or £500 for higher rate taxpayers). This is called a Personal Savings Allowance.
    If the total interest on all your taxable savings is more than this allowance, or you pay tax at the additional rate, you will need to declare your interest to HM Revenue & Customs and pay any tax due.
    • dw3305
    • By dw3305 24th Apr 17, 1:54 PM
    • 13 Posts
    • 3 Thanks
    dw3305
    • #4
    • 24th Apr 17, 1:54 PM
    • #4
    • 24th Apr 17, 1:54 PM
    I may not have made myself clear.

    The statement dated 8 April 2016 has interest correctly added at 6 April 2016. There is a footnote

    Interest earned for the 2015/16 tax year
    Total interest earned on this Bond: £0.00
    No interest has been earned on this Bond within the tax year ending 5 April 2016.

    That is correct.

    The statement dated 8 April 2017 has interest correctly added at 6 April 2017. There is a footnote

    Interest earned for the 2016/17 tax year
    Total interest earned on this Bond: £0.00
    No interest has been earned on this Bond within the tax year ending 5 April 2017.

    That is surely wrong.
    • RG2015
    • By RG2015 24th Apr 17, 2:16 PM
    • 125 Posts
    • 38 Thanks
    RG2015
    • #5
    • 24th Apr 17, 2:16 PM
    • #5
    • 24th Apr 17, 2:16 PM
    Does it show the current balance at 8th April 2017? If so, is this the same as your original subscription?

    If your statement shows no growth then you do need to check with NS&I as their website clearly states

    "Shortly after the end of each tax year we’ll send you a statement showing the interest earned and the value of your Bond"
    • Sceptic001
    • By Sceptic001 24th Apr 17, 2:21 PM
    • 1,099 Posts
    • 849 Thanks
    Sceptic001
    • #6
    • 24th Apr 17, 2:21 PM
    • #6
    • 24th Apr 17, 2:21 PM
    Yes, if the interest was correctly capitalised on 6/4/16 then it should be shown as earned in the tax year 2016/17.

    I would query it with NS&I. If the statement is wrong they may notify the wrong figure to HMRC.
    • dw3305
    • By dw3305 25th Apr 17, 11:05 AM
    • 13 Posts
    • 3 Thanks
    dw3305
    • #7
    • 25th Apr 17, 11:05 AM
    • #7
    • 25th Apr 17, 11:05 AM
    It seems to be confirmed that NS&I have made a mistake. As the only way of getting in touch seems to be phoning them, it's not urgent, and they'll surely realise they've made a mistake because I can't be the only one involved . . . I think I'll just sit tight for now!

    Thanks for your help.
    • teddysmum
    • By teddysmum 25th Apr 17, 6:06 PM
    • 7,501 Posts
    • 4,436 Thanks
    teddysmum
    • #8
    • 25th Apr 17, 6:06 PM
    • #8
    • 25th Apr 17, 6:06 PM
    It seems to be confirmed that NS&I have made a mistake. As the only way of getting in touch seems to be phoning them, it's not urgent, and they'll surely realise they've made a mistake because I can't be the only one involved . . . I think I'll just sit tight for now!

    Thanks for your help.
    Originally posted by dw3305
    Do complain as they probably won't notice.


    When we bought our bonds, both in the same phone call, the seller managed to spell my husband's surname wrong and gave me the wrong first name.


    My husband's error was put right, after two attempts, but the error in my name resulted in my having two accounts and no trace of my several premium bonds.


    It took ages to put right, especially as staff gave out the wrong information and being told that I only had £5000 worth of premium bonds was quite worrying.
    • dw3305
    • By dw3305 19th May 17, 11:57 PM
    • 13 Posts
    • 3 Thanks
    dw3305
    • #9
    • 19th May 17, 11:57 PM
    • #9
    • 19th May 17, 11:57 PM
    Just an update to say that doing nothing worked. Got a letter the other day saying they'd made a mistake, and a revised (correct) statement arrived today.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,639Posts Today

5,979Users online

Martin's Twitter