NS&I guaranteed growth bonds taxable?

Laaalaaa

Hi I opened an NS&I guaranteed growth bond (1 year) last year. It matures in a few months. My account is not showing any interest so far, but is this a taxable account? If so, how do I work this out? And am I correct in assuming that cash ISAs are tax free? Thanks in advance!

eskbanker

Is the interest taxable?

Yes, in the tax year your Bond matures

https://www.nsandi.com/products/guaranteed-growth-bonds

And yes, ISAs are tax-free, that's their raison d'etre....

ColdIron

It is a taxable account but you won't see any interest yet as it's only paid upon maturity. If you press the 'Get a valuation' button you will see the current value and interest accrued to date

If it was the 6.20% one, Issue 72 available between August and October, then you will get £62 for every £1,000 you deposited

You will see your rate on the right hand side of your account

SacredStephan

NS&I recently told me that they don't report the interest earned to HMRC after the end of the tax year like other banks do.

The onus is on the taxpayer to report it.

Kim_13

ColdIron said:

It is a taxable account but you won't see any interest yet as it's only paid upon maturity. If you press the 'Get a valuation' button you will see the current value and interest accrued to date

If it was the 6.20% one, Issue 72 available between August and October, then you will get £62 for every £1,000 you deposited

You will see your rate on the right hand side of your account

Thanks - I had assumed that 'Get Valuation' would only do anything where the option existed to cash the bond in early.

Dazed_and_C0nfused

SacredStephan said:

NS&I recently told me that they don't report the interest earned to HMRC after the end of the tax year like other banks do.

The onus is on the taxpayer to report it.

Pretty sure that is rubbish.

NS&I are even mentioned amongst the reporting information available on gov.uk.

https://www.gov.uk/guidance/bank-and-building-society-interest-returns

poppystar

SacredStephan said:

NS&I recently told me that they don't report the interest earned to HMRC after the end of the tax year like other banks do.

The onus is on the taxpayer to report it.

Yes they do. I had to phone HMRC recently and they told me to the penny what interest I’d had from NS&I and I certainly hadn’t told them so it had to have come from the horse’s mouth.