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bigduckontax
bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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Do I need to pay income tax on an income bond worth £10,000.

Customer Question

Do I need to pay income tax on an income bond worth £10,000. I earned £11,571 last year and ££11,850 the year before?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

Could you please help me a little? What sort of Income Bond do you hold and is it tax free? Furthermore, do you have any other source of income as you clearly appear to have?

In any event you will certainly owe some tax as your income exceeds your Personal Allowances (GBP 8105 in 12/13 and 9440 in 13/14) and you will be taxed at 20% on the surplus.

I really need more data before I can make a full response to your question.
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Expert:  bigduckontax replied 3 years ago.
Thank you for your support.

You should check your Income Bond distributions. They may well have tax credits attached to them. If they are 10% then they are already taxed and at the correct rate. If they are taxed at 20% then they go in the tax paid interest at box 1 of your SA100, annual self assessment return.