NS&I s hidden rule change has left savers facing tax chaos telegraph.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from telegraph.co.uk Daily Mail and Mail on Sunday newspapers.
With the change to tax on interest mentioned in your article last week I think that I may exceed the £1,000 Personal Savings Allowance.
I have a state pension and two small company pensions which total approximately £11,000, plus I have NS&I Guaranteed Growth Bonds and other savings on which interest may total over £1,000, causing me to potentially incur tax.
This hasn t been a concern before as some money was in Isas but as rates have dropped I have moved to other savings accounts.
As my income is below the Personal Tax Allowance of £12,570, will the balance of this be offset against my interest, and do I owe any money? – P.T., via email
NS&I altered the tax treatment of Guaranteed Growth Bonds in May 2019
The first multi-year bonds are now maturing for savers
All interest is now paid in the year bonds mature rather than each year
This could leave savers with bigger pots breaching their £1,000 Personal Savings Allowance and mean they face a tax bill
Will this hit you? Get in touch: george.nixon@thisismoney.co.uk
‘NS&I lost my mother’s £10k pensioner bond’
Has a company treated you unfairly? Our consumer champion, Katie Morley, is here to help
31 January 2021 • 5:00am
Has a company treated you unfairly? Our consumer champion, Katie Morley, is here to help. For how to contact her click here.
Dear Katie,
I am hoping you might be able to help my elderly mother, for whom I have power of attorney. She took out two investments with National Savings & Investments back in 2015, which were called “65+ Guaranteed Growth Bonds”. Both investments were for £10,000. The issue is that apparently there is no trace of one of the investments.