We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Savings interest and premium bonds account.
Options
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
-
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
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 350.9K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.9K Work, Benefits & Business
- 598.8K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards