NSANDI Reclaim tax on 65+ bond?

Alter_ego

Received first annual statement on my 3 yr bond showing tax deducted £80. Interest paid date 15/01/16
I am aware that there is a form to reclaim the tax but should this be done now or end of this tax year?
Subsequent years will be paid gross so this will be a once only claim.

xylophone

Tax overpaid in the 15-16 tax year can be reclaimed now using R40.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/419506/R40_M__internet_v2.0.pdf

Terry98

You can claim it now.

Do it online if you want https://www.gov.uk/personal-tax-account

Alter_ego

Just read the notes on completing the R40.

Note 3.1 - Please note that claims can only be made on tax taken from bonds in the tax year that the bond matures and the interest has actually been received.

It doesn't specifically mention NSANDI bonds, anyone actually had the tax on a 3yr one back yet?

xylophone

The interest has been received- let's suppose you were a higher rate tax payer and a holder of this bond - you would have to declare the income and pay the additional tax due in this tax year.

spg1

Just a supplementary question which hopefully someone may know the answer to!

My parents invested in one of these bonds and like the original poster have just had the first statement showing tax deducted on the interest paid. The bond is in my mum's name as she is a non-taxpayer so she can reclaim the tax paid back but presumably this will just be sent to her rather than returned to the bond to accrue further interest.

Seems a but unfair as one of the attractions of these bonds is that the annual interest is added to the capital (when you couldn't normally add to the capital once you have invested initially). It isn't a huge amount but effectively they will lose three years worth of interest on the tax deducted - unless there is a way for HMRC to recredit it to the bond?

le_loup

......... yes but! It was a fantastic rate of interest. Don't be too greedy!

joe134

just filled r40 for OH for her ns&i rebate, but noticed that last year sent hmrc letter and said she underpaid by £240, they didn't reply.
sending this r40 might just jog their memory, and send a bill instead of a rebate.
dillemma:rotfl:

Alter_ego

xylophone wrote: »

The interest has been received- let's suppose you were a higher rate tax payer and a holder of this bond - you would have to declare the income and pay the additional tax due in this tax year.

The words I quoted from note 3.1 are verbatim "In the tax year that the bond matures" To me that means when the bond matures in 2 years time.

xylophone

http://www.walesonline.co.uk/business/business-news/nsi-pensioner-bonds-everything-you-8451789

"If you’re a non-taxpayer, you’ll have to reclaim the extra interest from the taxman at the end of each financial year. It’s not difficult to do, but it is an added hassle. For details on how to reclaim overpaid interest, see HMRC’s website."

xylophone

NS&I have issued statements to holders in respect of these bonds.


The text below is copied from one holder's statement.


Tax information for the 2015/16 tax year

This is a statement given under Section 975 Income Tax Act 2007.
Total interest earned on this Bond: £400.00

Income tax deducted: £80.00


Interest after tax deducted: £320.00

Tax has been deducted from the interest at the basic rate, as shown on this statement. If you pay tax at the basic rate, you will have no more tax to pay on the interest from this 65+ Guaranteed Growth Bond in the tax year ending 5 April 2016. But if HM Revenue & Customs (HMRC) asks you to complete a tax return, you should still declare the interest.

If you pay tax at the higher or additional rate, you'll need to declare the interest to HMRC and pay any further tax due.

If you're a non-taxpayer, or you're entitled to have any of your interest taxed at the starting rate for savings income, you can apply to HMRC for a refund.