Tax on savings next year

zerog

I have some fixed-rate bonds taken out some time ago which are due to pay out in May 2016 or later.

Will these be paid gross even if I haven't filled and don't fill out an R85, or is this not entirely set in stone yet? If I remain a basic rate taxpayer, under what circumstances would I need to pay tax on them?

PeacefulWaters

If the interest is paid after 6th April 2016 no tax will be deducted.

if you earn an interest total in excess of £1,000 (outside of tax free savings) you'll be responsible for declaring this to HMRC.

As such, there's still a case for prioritising ISAs to protect against incurring a potentially increasing tax liability as and when interest rates move upwards. Assuming you can't get more in taxable current accounts!

colsten

PeacefulWaters wrote: »

s of £1,000 (outside of tax free savings) you'll be responsible for declaring this to HMRC.

£1,000 for BR tax payers, £500 for HR tax payers, £0 for additional rate tax payers.

PeacefulWaters

colsten wrote: »

£1,000 for BR tax payers, £500 for HR tax payers, £0 for additional rate tax payers.

Indeed.

Although the original question included the words "if I remain a basic rate taxpayer ..."