Halifax Guaranteed Reserve

The bond matures in six months and that`s when you get all your interest.
In fact when the bonds set up they give you an actual date when it matures.
Don`t know about the tax situation but most of the interest will be earned in THIS tax year when you are a tax payer so I don`t suppose you can register for gross int. `til next tax year.

hansi wrote:

Would anyone else care to comment on the tax situation please?

"When is interest taxable?
Your interest is taxable in the tax year that it is paid to you, or credited to your account, even if part of it has been earned in the previous tax year."

http://www.hmrc.gov.uk/taxback/question9.htm

My understanding of your situation would be that you open the account WITHOUT completing form R85. Then, on 6th April 2006, you register the account for gross interest by completing form R85. All the interest would then be paid gross - even that which was earned [but not paid] in the 2005/06 tax year.

I would have thought that if you become a tax payer at any time during the 2006/07 tax year, then you'll have to declare the gross interest earned on the account and obviously pay the tax on it.

Search the https://www.hmrc.gov.uk website for "interest gross register" to see more information.