65+ bond statement

xylophone

This does not really answer my question,

The interest (whether paid out to another account or not) has been made available to the recipient.

Tax has been paid in the tax year 2015-16 by the recipient.

Therefore the recipient, if not a tax payer, can reclaim that interest?

http://www.thisismoney.co.uk/money/saving/article-3071797/Early-bird-savers-rushed-open-Pensioner-Bonds-money-tax-disparity-confirmed.html

And before the change,

A customer services representative told them: 'The 65+ Guaranteed Growth Bond will have interest paid net of tax as NS&I is not included in the legislation that would allow us to take part in the Tax Deduction Scheme for Interest.
'Any customers that are not eligible to pay tax will need to apply for the tax back from HMRC each tax year.'




You can check with HMRC.

joe134

you cannot really do an R40 until a statement arrives, stating exact tax paid, but, nowt stopping you sending one off with what should be an estimate of interest received, and tax paid,let the Hmrc work it out, but, the rest of the form has to be filled in too, for all other income and tax paid etc, for 15-16.
is it worth it.? perhaps, for 5 minutes paperwork, especially, if like me , and have 2 x £10k invested, OH.
I've done one the last 2 years, no reply from them.
also, to say I owed them, no reply.
I will stick one in the post this year too, they won't write to let you know, unless , you owe them.:)

teddysmum

My question about a statement is answered, as on looking at the literature (for a phone number) I noticed that it says a statement will be sent in April ,so it could well be at the end of the month, but there will be one.


I imagine the statement will give information on tax reclaiming.

joe134

teddysmum wrote: »

My question about a statement is answered, as on looking at the literature (for a phone number) I noticed that it says a statement will be sent in April ,so it could well be at the end of the month, but there will be one.


I imagine the statement will give information on tax reclaiming.

There is only one way, and that's sending a R40.
Daily Mail has an article today about it in the money section, how it affects" owing the Hmrc money", in certain circumstances, due to new tax rules for interest gross.Worth reading online.

teddysmum

HMRC told me that you can only claim back the tax paid, on maturity, but as they have before given misinformation, I asked the Treasury what the situation was and twice, got a reply listing things I know (eg that we no longer pay the interest tax at source), without the question about when to reclaim being answered.


As someone ,on here, claimed that a spouse had reclaimed the tax on a three year bond, I asked my MP to see if he could clarify.


He contacted the Treasury, weeks ago, and has just had a reply, which told him that the tax can only be reclaimed at the end of the three year period.

xylophone

He contacted the Treasury, weeks ago, and has just had a reply, which told him that the tax can only be reclaimed at the end of the three year period.

I can confirm that a person well known to me who had to complete a tax return for the year 2015-16 has had the tax deducted on both the one year and three year bond refunded.

moneyfoolish

I'm in the process of filling in the R40 form to claim back £56 on the 1 year bond and £80 on the 3 year bond for my wife who is a non-taxpayer. I use the online syatem and all the details are available.

xylophone

I'm in the process of filling in the R40 form to claim back £56 on the 1 year bond and £80 on the 3 year bond for my wife who is a non-taxpayer. I use the online syatem and all the details are available.

And this is quite correct!

The so called "granny bond/pensioner bond" etc is actually the NS&I 65+ Guaranteed Growth Bond.

The interest is added to the capital annually.

See R40 and Notes for R40 3.1 to 3.7 https://www.gov.uk/government/publications/income-tax-claim-for-repayment-of-tax-deducted-from-savings-and-investments-r40


"Please include income received from:
to • building societies, banks and other deposit takers (including internet accounts)
from current and deposit accounts
• Government stocks – gilt-edged securities or gilts (but read the notes on
page 4 about accrued income)
• UK authorised unit trusts, open-ended investment companies
and investment trusts
• National Savings & Investments products where tax is taken off before you
receive it (First Option Bonds – no longer available, Guaranteed Growth Bonds
and Guaranteed Income Bonds)"

Any overpaid tax (including that on the 65+ Guaranteed Growth Bond will be refunded.

And as in my post above, I can confirm that it has been refunded

together with tax overpaid on another account and on a pension withdrawal!

xylophone

And see

http://www.telegraph.co.uk/money/ask-a-money-expert/when-does-the-interest-on-my-fixed-rate-bond-contribute-to-my-pe/


"However, if you had a bond that permitted you to draw on your savings during the term, it would contribute towards your PSA each year. This would apply even if the bond charged an access penalty.

For example, NS&I’s Guaranteed Growth three-year bonds pay the 4pc interest annually. Savers cannot access their money unless they surrender 90 days interest. The interest earned each year would contribute to their PSA as it is technically available.

An HMRC spokesman explained: “The existence of an interest penalty does not mean that the saver is not free to draw on their savings.”

A basic rate taxpayer who put the maximum £10,000 into NS&I’s three-year bond will earn £400 in year one, £416 in year two and £432 in year three. Each year, these returns would contribute to the PSA........

the declaring of interest for tax also depends on when the interest arises.

Those who fill out a self assessment tax return will record the interest there. If the interest is accessible during the term (even subject to a penalty) it will need to be declared each year. However, if it arises on maturity, it must be reported then."

A Statement of Interest has been produced for the holder of the 65+ GG bonds.

Such statements will be produced for other deposit accounts that he has.

The person completing the R40 gets together all such statements.

As instructed in the notes, interest for all such accounts is aggregated and reported in the correct place on the R40/SA form.

Under these circumstances, how would the tax overpaid not be refunded?

teddysmum

moneyfoolish wrote: »

I'm in the process of filling in the R40 form to claim back £56 on the 1 year bond and £80 on the 3 year bond for my wife who is a non-taxpayer. I use the online syatem and all the details are available.

Please let us know if you manage to get the interest tax back off the 3 year bond.


My MP said they are quite adamant that you cannot claim it yet.


Perhaps the person with a necessary tax return got a refund just because they have to submit a return (as opposed to a person whose tax is sorted automatically).