Advice for saving more than £50,000

clairef100

Hello
I am new to this forum!
I am a tiny bit confused because I was told by a bank that it would be better to save less than £50,000 in a Fixed rate bond because anything higher would result in me doing my own tax.
Has anyone else heard of this?
Your help appreciatted
Claire 100

psychic_teabag

I think I have heard of accounts where they pay interest gross under certain circumstances. Maybe the account in question is such a beast, with interest paid without deduction of basic rate tax if the balance is over £50k. That would make you responsible for declaring the income to the tax man yourself.

But this would be very specific to the account, rather than any kind of general statement. Which bank, and which fixed-rate bond was it ?

xylophone

I think that investments over £50000 in certain fixed rate bonds used to be regarded as "Qualifying Time Deposits" and the interest was paid gross (but of course had to be declared by taxpayers to HMRC).

However, the position may well have changed? See http://www.hmrc.gov.uk/tiin/tiin666.pdf

Best to check with HMRC?

clairef100

Hello
Thank you for your replies, the bank was Natwest and it was a 3 year Fixed rate bond.
thanks once again guys.

InsideInsurance

It sounds like they are saying you need to do a tax return if you go for another product. See the HMRC guide below on if you actually do or dont need to do one.

http://www.hmrc.gov.uk/sa/need-tax-return.htm

A self assessment tax return is very straight forward to do and really shouldnt be the reason to take a lower rated product to avoid it.

Onawingandaprayer

and you should bear in mind that the 'high street' banks will do all they can to get you to take out their products, even if it means telling the odd porky!