Government Bond Interest

Hi ,
 

Losses cannot be deducted so they should not be included  . Thank you .

 

Dear sir, Would you pleased advise how to fill in the forms of AI & foreign income as following situation in the tax year, 1) foreign saving interest received = GBP2100 2) US bond interest received =GBP4000 3) accrued income loss (buy & redemption difference)=GBP7000 I hope to clear which the right boxes to submit the right data, thanks! best regards

The advice on 'gilt strips' 6 months ago seems quite misleading, since Edmund asked about GILTS, not GILT STRIPS. From what I can tell, they have different tax treatment. My understanding is that for individuals, GILT coupons are taxed as income, but the uplift from purchase price to redemption is capital-gains free. Please can you confirm or provide an alternative explanation.

Hi Jack,
You can see guidance here:
Gilt-edged securities exempt from Capital Gains Tax
Thank you.

Hi Edmund,
We are unable to review personal matters in this forum. For an answer to a personal question of this nature, you would need to contact our Self Assesment team for advice.
Self Assessment: general enquiries
Thank you.

Dear Sir, The question is how to report to HMRC in case the accrued income loss of the DDS more than the Bond interest received and foreign interest saving received. I think it is a general question. Hoping you can advise how to complete the self assessment. Thanks! In case you can't advise the how to fill the data in the related boxes, can I submit the related transaction description without filling data in the box?

Hi edmund,
US government bonds, sometimes known as T-bills or treasury bills are generally taxed as income rather than Capital Gains.
The return is paid at maturity rather than regular interest payments.  
In the UK, these are known as deeply discounted securities, with the discount being the difference between the price at which they were issued and the price received at maturity.  
On a foreign investment the income is the difference between the purchase and redemption price after each has been converted to sterling on the day the transactions took place, so includes any foreign exchange gains.  
Losses cannot be deducted.
Have a look at:
SAIM3010 - Deeply discounted securities: introduction for more information.
Thank you.

Hi, For the redemption (at maturity) price you are talking, should that "include" the coupon (interest) of the T-bill or simply the face value of the T-bill? And, if this coupon (interest) should not be included in the redemption , then it should be declared as Interest earning only? Thanks a lot.

Dear Sir, According the SAIM3010, SAIM3080 & HS343, the SAIM3080 mentioned the loss can set again the income in same tax year, and HS343 are clear to mentioned the accrued income loss should be subtracted by the bond interest and foreign interest, in the HS343 8 step 2. After subtraction, my data will be negative, I wonder how to how express the clear picture for my tax return. Would you pleased to advise? Best regards

Hi ,
 

US government bonds, sometimes known as T-bills or treasury bills are generally taxed as income rather than capital gains.  The return is paid at maturity rather than regular interest payments.  In the UK, these are known as deeply discounted securities, with the discount being the difference between the price at which they were issued and the price received at maturity.  On a foreign investment the income is the difference between the purchase and redemption price after each has been converted to sterling on the day the transactions took place, so includes any foreign exchange gains.  Losses cannot be deducted. Have a look at : SAIM3010 - Deeply discounted securities: introduction    for more information . UK gains from DDS SA101 box 3. Foreign gains from DDS box 41 of SA106 and claim FTCR box 2 . Thank you .

Hi,
You can only set as much of the loss against the income in the same tax year, to offset the tax.  
Any surplus loss should be carried forward.
Thank you.

Dear Admin 8, Should the loss put on the income & expense, box 17 of the SA106 to offset another income? Best regards

Hi,
Please refer to our previous response.
Thank you.

Dear Admin 8 & Admin 19 I regret that I'm stupid enough and don't understand which the previous response to clear how to fill the assessment. I need to know which the box to fill for the loss of the foreign DDS and it setoff the same taxable year income. Actually, I have followed this topic over 6 months but I don't ensure I have the substantial answer.

Hi edmund,
Losses on deeply discounted secruties are not deductable so should not be declared.
Thank you.

Dear Admin 21, Thank yo for your very prompt reply. I regret that as per the SAIM3080 mentioned the loss of the DDS can set again the income in same tax year, and HS343 are clear to mentioned the accrued income loss should be subtracted by the bond interest and foreign interest, in the HS343, 8 step 2. Could you advise if I misunderstood the documents mentioned.? As per the previous response from Admin 8, as following, Posted 11 days ago by HMRC Admin 8 Response Hi, You can only set as much of the loss against the income in the same tax year, to offset the tax. which also confirmed that the loss can set off the same year income.