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Heard all about pensioner bonds…watch out for the small print!

Heard all about pensioner bonds…watch out for the small print!

We are sure you will have heard about the new ‘Pensioner Bonds’ for those aged 65 & over.

After some initial teething troubles the take up has been very good, with 2.8% interest offered on the 1yr and 4% on the 3yr bonds. However, remember that the interest will be paid net of 20% tax. For non-tax payers the only way to reclaim the tax suffered at source will be by submitting a form to HMRC.  Because the bonds are via NS&I there will be no facility to request that interest is paid gross, as is the case for most bank savings.

 If you pay higher or additional rate tax on investment income further tax will be due. On a 3yr bond, investors will pay tax on interest annually as it is credited to their account. However this will not actually be paid over to them until the end of the three year term.

If you need help or further information please do not hesitate to contact Lesley Sutton on 01484 550 037 or email tax@revellward.co.uk for more details.

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