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Posted Thu, 19 Dec 2024 11:40:03 GMT by Jonty
I have a three year National Savings Bond that matures 10th February 2026. On the 1st anniversary ie 10th February 2024 the following was declared by NS&I: 'Interest Capitalisation = £510'. Do I declare this on my 23-24 tax return, or do I wait until the bond matures in Feb. 26 and then declare total interest earned then?
Posted Mon, 30 Dec 2024 12:16:23 GMT by HMRC Admin 32 Response
Hi,
National savings bonds are not taxable per SAIM1120 and should not appear anywhere in your Self Assessment tax return.
SAIM1120 - Savings and investment income: tax exempt savings
Thank you.
Posted Mon, 30 Dec 2024 15:06:37 GMT by Clive Smaldon
Not HMRC, HMRC incorrect. This only applies to NSB savings certificates (relic investments). There are very few NSB bonds that are not now taxable of the main ones in issue currently, i.e. Income Bonds are most definitely taxable. NSB Income Bonds, Capital Bonds, Pensioner Bonds, First Option Bonds, Fixed Rate Savings Bonds and both the Investment accounts and Easy Access Savings accounts are all taxable on the same basis as any other bank interest...therefore your £510 goes on the return for 23/24 if from any of these.

[Post amended - Admin]

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