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US zero coupon bond

Christine Fisher
Posted Sun, 17 Mar 2024 16:24:45 GMT by Christine Fisher
Is a 10 year US zero coupon bond subjected to income tax before maturity?
HMRC Admin 25 Response
Posted Fri, 22 Mar 2024 07:05:23 GMT by HMRC Admin 25 Response
Hi Christine Fisher,
If any interest payments are made before maturity, yes.
Thank you. 
Answer
Tony Huang
Posted Thu, 07 Nov 2024 12:20:13 GMT by Tony Huang
Hi Admin, Is there such a thing as taxable phantom income fo zero coupon bonds, where you're taxed on the potential interest you could have earned, even though no interest payments are made before maturity? Thank you.
Answer
HMRC Admin 34 Response
Posted Tue, 12 Nov 2024 12:12:31 GMT by HMRC Admin 34 Response
Hi,
Please refer to guidance using the link below:
SAIM2400 - Interest: taxation of interest: the tax charge
Thank you

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