Tax Guide - National Savings Certificates

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Tax Guide - National Savings Certificates

Many of National Savings products are tax free - they offer various ISAs with the same tax rules as other ISAs (see ISA Tax Guide) and a Children's Bonus Bond for which neither the child or the parent has any tax liability.

Fixed Interest and Index Linked Savings Certificates - All the interest you earn is tax-free, which is a particular incentive to higher rate taxpayers, who don't have to declare them on their Inland Revenue self-assessment form.

Savings accounts - the interest is paid gross - ie before tax - so it is ideal for non-taxpayers. However, if you do pay income tax you will need to declare this to the Inland Revenue yourself.

Premium Bonds - the advantage is that all the potential prize money is tax-free, so you don't need to declare any of it on your tax return if you have any winnings.

Whether you are a non tax payer or the rate at which you pay tax is an important factor that should always be taken into account when choosing any type of investment. If you would like to talk to a financial specialist, please complete a Quick Enquiry Form and we will arrange for an independent adviser to contact you.