I recently opened a bond with a building society which matures in August 2010. Interest at 4% is payable gross on maturity. Do I pay income tax on the full amount of interest in the year to April 2010/11 or may I calculate the amount of interest earned by 5 April 2010 and declare this for the tax year 2009/2010. The first option would take me over my personal allowance for 2010/2011 whilst the second would keep me under for both years. Many thanks
Toby
Bond Interest payable yearly
2 posts • Page 1 of 1
Bond Interest payable yearly
by toby713 on Mon May 25, 2009 10:23 am
- toby713
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Re: Bond Interest payable yearly
by pawncob on Mon May 25, 2009 10:32 pm
The interest is taxable when paid.
This means it all falls in one tax year and you pay the tax due.
Life's like that.
This means it all falls in one tax year and you pay the tax due.
Life's like that.
With a pinch of salt take what I say, but don't exceed your RDA
- pawncob
- Posts: 2178
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- Location: West Sussex
2 posts • Page 1 of 1
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