QTD - RIP (bye bye Qualifying Time Deposit)

John_Pierpoint

From 6 April 2012 tax will be deducted at source from taxable interest paid on new QTD accounts.
This will be achieved by including newly opened QTDs within the tax deduction scheme for interest operated by banks, building societies and other deposit takers.
The Government will informally consult stakeholders on the implementation of the change during May 2011 and will legislate in [the] Finance Bill 2012.

http://cdn.hm-treasury.gov.uk/2011budget_taxation_overview.pdf

For those who still have time to open a QTD it is a fixed interest account paying gross interest on sums of > 50,000.
The interest could be paid monthly but had to be extracted from the account.
As it was an investment fixed for a definite period banks sell/sold these investments as "Bonds" and their staff did not understand the rules. The same can be said for junior staff at HMRC.

I've been playing "piggy in the middle" for [STRIKE]months[/STRIKE] years.

It is too late for my experience but should make the tax system that little bit simpler for everyone else.

https://forums.moneysavingexpert.com/discussion/2564195

https://forums.moneysavingexpert.com/discussion/2614171

https://forums.moneysavingexpert.com/discussion/2726359