Help with claiming tax back on savings form

guspoppy

Hello.
I'm helping my mum fill out her form to claim her tax back on her savings as she is low earner so doesn't pay tax.
I'm no accountant so need some help!
I'm OK with most questions but i'm stuck on that she has a legal and general capital protection growth bond. It has interest from January 15 to january 16 It matured few years ago but she decided to leave it in there for bit longer.

Now the bit I'm stuck on is where the form says net interest paid by banks building societies etc and purchased life annuities. I don't know if this goes on this bit of the form or if it's not meant to be declared like the ISA...?

Thanks!

X

booksurr

it is not an ISA otherwise it would say so

therefore yes it should go on the form, treat it the same as any other bank interest as that is what it is: interest earned on a lump sum held by in interest paying account

xylophone

Does your mother have the original product information leaflet?

What does it say about taxation?

guspoppy

I've found a booklet and it says money in with the amount then the same amount invested in units. So I think it's been reinvested. We've just got annual bonus statement , nothing about tax or how much interest has been earned over last tax year.

Sorry to be so dim but I've just got normal bank account with not much in..lol

xylophone

I've found a booklet and it says money in with the amount then the same amount invested in units. So I think it's been reinvested. We've just got annual bonus statement , nothing about tax or how much interest has been earned over last tax year.

It has interest from January 15 to january 16 It matured few years ago but she decided to leave it in there for bit longer.

Does your mother have the original paperwork that explains exactly what this product is and how it is taxed- (Key Features/Key Facts leaflet)?

It doesn't sound to me like an

interest paying account.

antrobus

guspoppy wrote: »

...I'm OK with most questions but i'm stuck on that she has a legal and general capital protection growth bond. It has interest from January 15 to january 16 It matured few years ago but she decided to leave it in there for bit longer.....

It sounds to me like one of those non-qualifying life insurance bonds.

As a general rule, they have no impact on tax unless there is a chargeable event, in which case the insurance company sends you a certificate, and you stick the numbers from that certificate into the 'additional information' box on your SA100.

https://www.gov.uk/government/publications/gains-on-uk-life-insurance-policies-hs320-self-assessment-helpsheet/hs320-gains-on-uk-life-insurance-policies-2015

[Deleted User]

antrobus wrote: »

It sounds to me like one of those non-qualifying life insurance bonds.

As a general rule, they have no impact on tax unless there is a chargeable event, in which case the insurance company sends you a certificate, and you stick the numbers from that certificate into the 'additional information' box on your SA100.

https://www.gov.uk/government/publications/gains-on-uk-life-insurance-policies-hs320-self-assessment-helpsheet/hs320-gains-on-uk-life-insurance-policies-2015

I believe that you are correct in that it would appear that it WAS one of these policies. However, as it matured 'a few years ago' when any chargeable event would have arisen, it is more likely that it is indeed just interest that is being received.

antrobus

[Deleted User] wrote:

I believe that you are correct in that it would appear that it WAS one of these policies. However, as it matured 'a few years ago' when any chargeable event would have arisen, it is more likely that it is indeed just interest that is being received.

Well I obviously don't know myself, but the OP does say that after the policy matured (which would have been a chargeable event) that she "decided to leave it in there for bit longer"; which kinda suggests that the money was re-invested. The L&G is still declaring bonuses for its 'capital protection growth bond', so clearly it still exists.

http://www.legalandgeneral.com/existing-customers/with-profits-information/bonus-declaration-overview/bonds-bonus-declaration/

I tend to doubt that it is interest because L&G is not a bank. I don't think it accepts deposits, it certainly does not offer cash ISAs for one thing.

[Deleted User]

antrobus wrote: »

Well I obviously don't know myself, but the OP does say that after the policy matured (which would have been a chargeable event) that she "decided to leave it in there for bit longer"; which kinda suggests that the money was re-invested. The L&G is still declaring bonuses for its 'capital protection growth bond', so clearly it still exists.

http://www.legalandgeneral.com/existing-customers/with-profits-information/bonus-declaration-overview/bonds-bonus-declaration/

I tend to doubt that it is interest because L&G is not a bank. I don't think it accepts deposits, it certainly does not offer cash ISAs for one thing.

Of course. My post was just based on a recent experience of a client who had one of these policies but did not take the money upon maturity - she was 91 and the policy only came to light after her death. The money was held by the company after maturity paying a derisory interest but interest nevertheless. I suppose we need more information from the op!