1. Home
  2. UK Finance Discussions
  3. NSI FTSE GEBs

NSI FTSE GEBs

A question about National Savings and Investments Guaranteed Equity Bond

formatting link
With this bond, your money is locked into the investment for 5 years. At maturity, the interest (if any) is liable to tax. If the investor happens to be a non-tax payer when the gross interest is paid, does this mean that no tax needs to be paid on the gross? Or is the tax calculated depending on the investor's tax status, either a tax payer or non-tax payer, for the 5 year period?

And, what is likely to happen to the FTSE in the next 5 years?

Reply to
dj_kuitar
Loading thread data ...

Yes

"Are the returns liable to income tax?

Yes. All returns are liable to UK Income Tax, at the rates that apply to savings, in the tax year 2008-09. After your Bond matures, any interest earned during the offer period and any return from FTSE growth will be paid gross, so will need to be declared on your tax return. Capital Gains Tax does not apply. See opposite for the income tax treatment on death."

formatting link

No

Up imo. So much so that, unless I required the guarantee, I wouldn't use a GEB.

Daytona

Reply to
Daytona

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.