Bonds and Tax

khaki304

Please can somebody help me with my Tax query.

I have a 3 year fixed rate bond with the Northern Rock. The interest is accumulated annually back into the bond. And they send me annual tax statements telling me how much interest has been earned that year.

What I would like to know is: do I have to wait until the bond matures and then declare all 3-years worth of interest in one Self Assessment tax form OR am I supposed to declare the interest earned each tax year?

Thanks in advance.

dunstonh

it is done each year.

Make sure you do not record it as a bond on the tax return but as interest. These products are not bonds despite the building society marketing men using that term.