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Posted Tue, 14 Nov 2023 13:47:46 GMT by
Hi, Just looking for clarity on how to report a US EE Treasury Bond on self assessment. The bond was originally purchased for $50 and matured to $100 before being cashed in (over 20 years). I believe this meets the requirement for a DDS I believe I would declare the difference (between the £ price at purchase Vs £ at maturity) as foreign income, but not sure where? I then assume I would declare the interest earned (a few dollars) based on the exchange rate at the time, as overseas interest?
Posted Tue, 14 Nov 2023 20:06:33 GMT by
To clarify the interest would be from maturity to redemption. So maybe should declare the difference (between the £ price at purchase Vs £ at redemption) as foreign income?
Posted Thu, 16 Nov 2023 12:24:01 GMT by HMRC Admin 25
Hi BritishAl23,
If you invest in deeply discounted securities, put the difference between what you paid for the bond and what you redeem or sell it for in box 3 of SA101 (page Ai1).
Thank you. 
 
Posted Thu, 16 Nov 2023 13:52:55 GMT by
Thanks. For clarity what is this on the online version?
Posted Thu, 16 Nov 2023 16:47:08 GMT by
Hey Admin 25, I think you may have replied to the wrong thread.
Posted Thu, 16 Nov 2023 21:24:41 GMT by
Thanks for the reply. Box 3 of SA101 (page Ai1) appears to relate to UK income. As this was a US bond surely it would be under foreign section? Can you advise where to put this on online self assessment.
Posted Fri, 17 Nov 2023 08:33:37 GMT by HMRC Admin 25
Hi BritishAl23,
As per the link to HS265 in previous reply.                                                                                                                                                                            Income from a fund, including excess reported income, should be returned in the Foreign Pages (SA106) tax return in the following areas:
If the income is treated as interest, then you should report it on pages 2 and 3 under ‘Interest and other income from overseas savings’
If the income is treated as a dividend, then you should report it on pages 2 and 3 under ‘Dividends from foreign companies’
If the income is treated as property income, then you should report it on pages 4 and 5 under ‘Income from land and property abroad’
If the income is treated as miscellaneous income, then you should report it on pages 2 and 3 under ‘Interest and other income from overseas savings.
Thank you. 
Posted Fri, 17 Nov 2023 11:52:15 GMT by
Hi Admin 25. I thinking you may be replying to the wrong thread. Could you please confirm where I should report the US EE Bond (US Treasury) on the online self assessment. This is not a fund. But a savings bond issued by the US treasury. Based on other threads it's a DDS.
Posted Fri, 17 Nov 2023 12:37:17 GMT by HMRC Admin 32
Hi BritishAl23,

Thank you for bringing this to our attention. The post has been removed and moved to the correct thread.

Thank you.
Posted Fri, 17 Nov 2023 14:13:04 GMT by
Thanks Admin 32. There also appears to be another response refering to HS265 which seems to be in the wrong thread (unless I'm mistaken). However for clarity, could you please confirm where I should report the US EE Bond (US Treasury) on the online self assessment. I was originally advised Box 3 of SA101 (page Ai1), but this seems to relate to UK income. This is a savings bond issued by the US treasury, and was cashed in the US. Based on other threads it's a DDS.
Posted Mon, 20 Nov 2023 14:36:05 GMT by HMRC Admin 5
Hi BritishAl23

You will tailor your retrun to answer yes to foreign income to allow additional boxes to open and declare it as other income and offshore gains.

Thank you
Posted Tue, 21 Nov 2023 10:08:05 GMT by HMRC Admin 19
Hi,

As it is classed as a deeply discounted security, it will be under UK income and you will need to convert it to sterling.

Thank you.
Posted Tue, 21 Nov 2023 19:00:29 GMT by
Could someone please confirm which it should be? Based on other advise given in other threads, I assume it would be an OIG? Both are charged at the same rate.
Posted Tue, 21 Nov 2023 19:09:55 GMT by
For clarity this was a US Treasury bond, that was cashed in a US bank. It had no tie to the UK.
Posted Wed, 22 Nov 2023 01:37:32 GMT by
Hi, Just to clarifying the meaning of DDS. In the above example, if the US Treasury was orginally issued at $100 30 years ago, and due to natural market price movement, I purchased at $50 20 years ago. Is it still a DDS when it matures at$100 now? I originally thought DDS definition looks at the price at original issue (not individual person purchase price from open market) vs the price at maturity? Please kindly advise.
Posted Wed, 22 Nov 2023 10:37:03 GMT by HMRC Admin 5
Hi BritishAl23

Apologies, please ignore that answer.
If you invest in deeply discounted securities, put the difference between what you paid for the bond and what you redeem or sell it for in box 3 of SA101 (page Ai1).
Please see - Additional information

Thank you
Posted Wed, 22 Nov 2023 10:40:10 GMT by HMRC Admin 5
Hi BritishAl23

On a paper self assessment tax return, an overseas DDS, would be declared in box 41 on page F6.  
Online, you would tailor your return to include foreign income.  
In section '4 - fill in your return'.  
On page 2 of 2, tick yes to "Any other overseas income and gains".  
This will bring up the equivalent of box 41.

Thank you
Posted Wed, 22 Nov 2023 13:09:41 GMT by HMRC Admin 10
Hi
US treasury bonds are classed as deeply discounted securities for UK tax purposes.
Posted Wed, 22 Nov 2023 16:17:11 GMT by
Hi HMRC, Sorry I was confused. US treasury bill is typically issued at discount for maturity less than one year. Therefore I can understand it's a DDS from UK tax purpose. Howver for US treasury bond is typically issued at 100 with maturity 20 to 30 years, they mature at par value 100. So according to the DDS guideline, it shall not be a DDS?
Posted Wed, 22 Nov 2023 18:26:54 GMT by
As there doesn't seem to be a consensus, I've spoken to two tax advisors separately and they've both confirmed it should go an a OIG on the SA.

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