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Savings interest and premium bonds account.
Msolo
Posts: 2 Newbie
I have a bank account that will pay me a fixed interest amount at the end of a fixed one year term. I should pay 20 percent interest from the amount to HMRC.
My question is if my nominated bank for my interest is a premium bond account
Would I still be liable for paying 20 percent as a premium bond account doesn't pay tax.
My question is if my nominated bank for my interest is a premium bond account
Would I still be liable for paying 20 percent as a premium bond account doesn't pay tax.
0
Comments
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It's academic as you won't be able to nominate a premium bond account as a linked account for a bank, but in any case it wouldn't eliminate any tax liability relating to the interest already earned, even though the return (prizes) from PBs themselves isn't taxable.
Edit: just to check, are you definitely due to pay 20% tax on your interest, i.e. you've used all of your allowances and nil-rate bands, etc?1 -
Yes I will be liable to pay the 20 percent tax.
Thanks for the information.0 -
Presume you have used all your ISA allowance ?0
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