Pensioner Bonds Guide

Glen_Clark

ColdIron wrote: »

NS&I refer to them as 'savings bonds for people aged 65'

However it looks like George himself originated the term

‘Many pensioners have seen their incomes fall as a consequence of the low interest rates that Britain has deliberately pursued to support the economy. It is Britain's turn to help them out in return, so we have launched the new pensioner bond paying market-leading rates,’

http://www.independent.co.uk/news/budget-2014-speech-in-full-9202930.html

:rotfl: Translated that means pensioners are the group most likely to vote so we are giving them a bung

balf

What did they say "buy now to avoid disappointment" So if you bought early you are clobbered for tax. Those who bought at the last minute get it gross.

Something wrong there, what.

David.

young_pensioner

Since I have a low income, I can reclaim the tax deducted from the first year interest on a 3yr 65+ pensioner bond.

However, I would like it returned to my bond account, not paid into my bank account. Does anyone know how it can be achieved?

Primrose

I don't think you can add the tax deducted back onto the three year bonds because my understanding is that they're now a closed issue and no further money can be added to them. .

young_pensioner

Primrose wrote: »

I don't think you can add the tax deducted back onto the three year bonds because my understanding is that they're now a closed issue and no further money can be added to them. .

That is what I thought. Seems rather unfair since HMRC took it out. :sad:

bowlhead99

young_pensioner wrote: »

That is what I thought. Seems rather unfair since HMRC took it out. :sad:

But on the plus side, they don't need to incur the expense of taking in small investments of £2-£50 at the end of year one from people who are non taxpayers and claimed back their tax and now want to invest some paltry amount of money for a partial term. This is a good thing in terms of capping costs, which in turn allows everyone to get a higher overall rate.

So think of it as you doing your bit to subsidize better rates for all. The rest of us already did our bit by paying tax...

young_pensioner

bowlhead99 wrote: »

But on the plus side, they don't need to incur the expense of taking in small investments of £2-£50 at the end of year one from people who are non taxpayers and claimed back their tax and now want to invest some paltry amount of money for a partial term. This is a good thing in terms of capping costs, which in turn allows everyone to get a higher overall rate.

So think of it as you doing your bit to subsidize better rates for all. The rest of us already did our bit by paying tax...

I think the term is conning not capping!
I have paid a considerable amount of tax on my honestly earned income throughout my working life. The fact that you might currently have sufficient income to be paying tax is good news for you.

It seems unfair to offer pensioners aged 65+, a return on preserved savings with NS&I who are not part of the R85 scheme. Then any investor who does not have the good fortune to have a sufficiently high income to still be in the tax bracket, has to jump through hoops to later reclaim tax which has been deducted. (by completing the R40 form). Many pensioners of that age will be reluctant to tackle that route. Consequently, they will lose their rightful tax-free benefit!

Incidentally, I worked until the age of 68+ as a tax payer, even though my NRA was 60.

young_pensioner

I submitted my R40 at the end of February this year after I had received the first year interest on my 3yr bond.

...Still waiting!
I have made various phone calls to try to check on its progress. After holding on for some considerable time on each call waiting for someone to answer, I am still no further forward. I was told that someone would call me within 3 weeks, but again no communication. I am now waiting for a telephone call back within 2 weeks. Why they couldn't just put me through to whoever is supposed to be dealing with it, I can't imagine.

xylophone

You are certain that the R40 has actually been received?

teddysmum

This has been discussed on another thread, but HMRC told me twice (over the phone) that you can't get your tax back until the bond matures.


This is fair enough when the interest is only paid on maturity (as tax is usually paid on receipt of income), but here tax has been taken and kept for two years, where tax is not due.

I wrote to the Treasury website and got a long reply explaining about no tax being deducted from this year and that tax was taken for the first year (things of which I was already aware) but no comment on the pre-taxing situation.


I had no reply from my returned comment that my question was unanswered. (ie Was there likely to be a special case for these unusual bonds? )