Icesave Tax Treatment question

cottons

Hi folks

Hope you can help, I have a question about the tax treatment of former Icesave accounts.

When I last had access to my 2yr fixed term account online I recall that some interim interest had been added (round about October I think), even though it wouldn't normally have been due until the anniversary in January.

I have now asked FSCS to run my account to maturity in Jan 2010 so I understand that no further interest will be due until then.

So my question is, for the 08-09 tax year I assume I will have to declae the interest that was added in October - even though I don't have any official record of it. Will FSCS send us a statement for tax purposes?

Thanks,
S

withnell

Yes you need to declare for tax returns through the tax year, even if they remain tided up, they have been paid into the bond. If you only have the net amount then divide it by 0.8 to get the gross

Newly_retired

I have just had cheques for two of my Icesave Fixed Term deposits. There was no paperwork about the tax situation, just the total amount being paid, not broken down into capital. interest, tax.
I rang FSCS and they confirmed that tax had been taken but could/ would give no details. I asked about a tax certificate and she said I would have to discuss this with HMRC who would know all about the situation (!).
I feel this is unsatisfactory. If FSCS have taken tax ( which I reckon they have) they should tell us how much.

withnell

They will have taken tax of

(<bond closing amount> - <bond opening amount> ) * 0.25

This works out as a 20% tax rate on the savings income

cottons

Agree with 'Newly retired'....

so is it not obligatory for organisations to send out a "section 975 tax deduction certificate" post April if requested to do so?

S

withnell

cottons wrote: »

so is it not obligatory for organisations to send out a "section 975 tax deduction certificate" post April if requested to do so?

They normally will if you ask, but as I'm sure everyone knows, Landsbanki have gone bust!