Bonds & Savings - Paying Tax At Source

DPhil

I've been trying to invest in a bond and have been told that, up to £50k it is taxed at source, and anything above £50k I will have to declare the tax myself.

Does anyone know why it isn't possible for the bank to pay all tax at source regardless of amount invested?

Thanks.

opinions4u

It depends on whether the account is a qualifying term deposit or not.

Accounts that allow access (such as C&G, Halifax or BoS) are not QTDs.

Accounts that don't allow access (e.g. Lloyds TSB, Santander) are, for £50k+, usually QTDs.

Although from 6th April 2012 there will be no new QTDs and all accounts like this will have to deduct tax at source.

Ifts

Also some information on QTD's in this link:
http://www.hmrc.gov.uk/tdsi/tdsi-guidance-for-dt-2.htm#212

As o4u states in above post, from 6th April 2012 there will be no new QTD's, income tax payers will have to have interest paid net:
http://www.hmrc.gov.uk/tdsi/mailshot38.htm