Tesco 7.622% Bond

walkthelakes

My wife was sent this offer which when you express an interest takes you to a referral to a Citibank advisor.
The documents you get are followed by a call from them.
Our query was if the interest was liable to uk income tax. The initial answer we were given was that it wasn’t even if outside an isa so long as the amount was under the annual cgt allowance.
This seemed to us to be irrelevant and our concern was if we exceeded the annual savings allowance.
We were assured that if we took the interest annually then it was not considered income but if monthly it was!
Unless this bond has some special feature we are yet to discover then we cannot see how the interest paid annually can not be included in your savings allowance.
Anybody come across this or have an opinion? 

friolento

How did the firm get your wife's address? Are you sure this has anything to do with Citibank, the bank?  Sounds rather scammy to me

wmb194

walkthelakes said:

My wife was sent this offer which when you express an interest takes you to a referral to a Citibank advisor.
The documents you get are followed by a call from them.
Our query was if the interest was liable to uk income tax. The initial answer we were given was that it wasn’t even if outside an isa so long as the amount was under the annual cgt allowance.
This seemed to us to be irrelevant and our concern was if we exceeded the annual savings allowance.
We were assured that if we took the interest annually then it was not considered income but if monthly it was!
Unless this bond has some special feature we are yet to discover then we cannot see how the interest paid annually can not be included in your savings allowance.
Anybody come across this or have an opinion? 

Stop, stop, stop! Where did this, "offer" come from? Has she filled in a contact form somewhere online? This is a common scam where they claim to offer a London listed corporate bond - they'll give an ISIN code you can Google - but in fact no bond will be bought and you'll lose your money. Does Citibank even offer this kind of service to UK retail investors?

Btw, it's a good indication of a scam that what they told you re interest and tax is completely wrong - they'll tell you anything to get your money.

masonic

Most likely the special feature is that rather than investing in the bond, your wife's money will be transferred to scammers where it will never be seen again. So, the initial answer about the tax situation is correct as there won't be any interest to pay tax on.

If you were investing in the real corporate bond, the interest would be subject to PSA and taxable.

refluxer

This is a common scam. Here's a warning Tesco Bank issued a while ago...



What personal details have you given them so far ? 

ColdIron

Tesco don't appear to do a 7.662% coupon corporate bond and of course the tax 'advice' is rubbish

https://www.tescoplc.com/investors/debt-investors/unsecured-bonds/

If you wanted a Tesco corporate bond why not buy it on the open market from a legitimate vendor?

Sounds likely to be a clone scam to me

Edit: They do, XS0425412227 a property bond but it's far from certain that you are dealing with an honest broker

Albermarle

Pole Touch Don't It Barge With A

jaypers

Scam. You will lose your money. These are thieves. Avoid. 

ranciduk

Back away slowly , avoiding eye contact 

then run for the hills

walkthelakes

I have reported it as a potential scam but can assure you that it is a very convincing set of documents. Just the odd slip that I am sure most would not pick up on.
Perhaps this needs some alert to be issued?

jaypers

walkthelakes said:

I have reported it as a potential scam but can assure you that it is a very convincing set of documents. Just the odd slip that I am sure most would not pick up on.
Perhaps this needs some alert to be issued?

Sorry but it’s an obvious scam, just based on the headline rate alone. Numerous red alerts reading your OP alone. But I guess to many these are in fact convincing and sadly why so ,any people lose their hard earned cash. Penalties for these scammers should be for harsher IMHO.