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banking groups confusion
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[Deleted User]
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I'm trying to avoid paying interest on tax as much as I can. I have got ISAs and Premium Bonds, but thought I'd use Gatehouse again. I've used them previously so happy with them. They give profit, not interest, and from my research, you don't pay tax on profit. Can anyone clarify that please?
Secondly, I have ISAs with Paragon Bank and they have the same address and details as Gatehouse. I've looked on the FCSC website for banking groups, but it only lists Paragon as being owned by Paragon LTD, Gatehouse is not there. Can anyone answer that please?
Secondly, I have ISAs with Paragon Bank and they have the same address and details as Gatehouse. I've looked on the FCSC website for banking groups, but it only lists Paragon as being owned by Paragon LTD, Gatehouse is not there. Can anyone answer that please?
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Incorrect. Profit is interest as far as HMRC is concerned.I think this page makes things clear regarding FSCS compensation: https://www.paragonbank.co.uk/savings/financial-services-compensation-scheme
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[Deleted User] said:They give profit, not interest, and from my research, you don't pay tax on profit. Can anyone clarify that please?@[Deleted User] This is a quote from Al Rayan's website ..... (Al Rayan are a Sharia compliant bank and pay expected profit rather than interest .....)Quote: The profit earned on a savings account is classed as income. Savers currently pay tax on this income, based on their income tax bracket. Endquote.Basically ALL unearned income is taxable subject to any personal allowances, unless it is from an ISA which is tax free .....
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steveksullivan said:[Deleted User] said:They give profit, not interest, and from my research, you don't pay tax on profit. Can anyone clarify that please?@[Deleted User] This is a quote from Al Rayan's website ..... (Al Rayan are a Sharia compliant bank and pay expected profit rather than interest .....)Quote: The profit earned on a savings account is classed as income. Savers currently pay tax on this income, based on their income tax bracket. Endquote.Basically ALL unearned income is taxable subject to any personal allowances, unless it is from an ISA which is tax free .....This is not quite correct, because the Personal Savings Allowance does apply to profit, but it does not apply to non-interest income. The £1,000 or £500 PSA can therefore be used against profit where applicable, which would not be the case if the income were not classed as interest.From HMRC: "ITA07/S564F covers an agency arrangement known as Wakala...ITA07/S564F also characterises the amount received by the investor under such arrangements as ‘alternative finance return’...For non-corporate investors, ITA07/S564M provides that for the purposes of ITTOIA 2005, alternative finance return is treated as if it were interest."Also from HMRC: "A profit share agency arrangement is similar to a conventional bank savings account...The payment or credit made by the financial institution to the customer is equivalent, in substance, to a return made on an investment of money at interest."1
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1. You can check your money is protected on website below.
https://www.fscs.org.uk/check-your-money-is-protected/
Gatehouse Bank PLC, has FRN 475346
Paragon Bank PLC, has FRN 604551
2, Use the FCA register below to find their address.
https://register.fca.org.uk/s/
you get these:-
https://register.fca.org.uk/s/firm?id=001b000000Mg1qyAAB
https://register.fca.org.uk/s/firm?id=001b000000NMWVGAA5
3. The FCA is warning you that there is a scam clone impersonating Paragon Bank. So make sure you are dealing with the "Real Paragon Bank" and not the clone one.
https://register.fca.org.uk/s/unauthorised-firm?id=0010X00004ilIULQA2
https://www.fca.org.uk/news/warnings/paragon-bank-clone-fca-authorised-firm
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