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Tax on investments interest
Tigerboy
Posts: 4 Newbie
If I have a 1 year fixed interest bond that matures, and then I put it into another 1 yr bond with the same investor. When will I be taxed on the first 1 year investment, so i have affectively rolled the matured funds (including interest) into a new investment. Assume the interest is above the £1,000 allowance for investment income.
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Comments
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Assuming that the first 1 year bond paid its interest at maturity, not monthly, you will be taxed on its interest when it matures, because that's when you had access to the interest (it's not relevant that you chose to re-invest it with the same provider). If it paid the interest out to you monthly, then each month's interest is taxable when you receive it.0
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Just be aware that when you mention investing, most people will think of stocks and shares.Tigerboy said:If I have a 1 year fixed interest bond that matures, and then I put it into another 1 yr bond with the same investor. When will I be taxed on the first 1 year investment, so i have affectively rolled the matured funds (including interest) into a new investment. Assume the interest is above the £1,000 allowance for investment income.
I think you are talking about savings, not investments.
The £1000 personal savings allowance refers only to interest from savings.
Income and gains from investments is treated totally differently.1 -
It also applies to interest from investments e.g., interest paid by corporate bonds and sometimes companies, for instance infrastructure ITs and REITs, pay interest instead of/as well as dividends.Albermarle said:
The £1000 personal savings allowance refers only to interest from savings.Tigerboy said:If I have a 1 year fixed interest bond that matures, and then I put it into another 1 yr bond with the same investor. When will I be taxed on the first 1 year investment, so i have affectively rolled the matured funds (including interest) into a new investment. Assume the interest is above the £1,000 allowance for investment income.
https://www.gov.uk/apply-tax-free-interest-on-savings
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