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Where Taxpayers and Advisers Meet

Credit union interest

Herbs16
Posts: 69
Joined: Wed Aug 06, 2008 3:53 pm

Credit union interest

Postby Herbs16 » Fri Nov 01, 2019 12:44 pm

Hi
Can anyone help if a Credit Union has National Savings Certificates, which are free from UK income tax & capital gains, do we have to pay Corporation Tax on the index linked return & interest?
thanks

pawncob
Posts: 4386
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Credit union interest

Postby pawncob » Fri Nov 01, 2019 1:51 pm

I assume you've bought as a trustee.
You can also buy one for a trust as a trustee (including as a corporate trustee), either by yourself or jointly with other trustees. The beneficiaries of the investment must be named individuals.Account terms.1 May 2019.This agreement is in two parts. It contains the account terms for our Index-linked Savings Certificates, and the general terms for saving with NS&I. Please read both parts carefully. If there’s anything you’re not sure about, just get in touch and we’ll be happy to help.Customer agreement.

Read the Summary Box info.
Especially the bit that say:Tax-free means the interest is exempt from UK Income Tax and Capital Gains Tax.

I suspect they're not exempt from C.T.
With a pinch of salt take what I say, but don't exceed your RDA


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