How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4200
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I have borrowed money from a bank in order to invest into bonds

Customer Question

I have borrowed money from a bank in order to invest into bonds for a period of 5 years and provided collateral deposit. Throughout those years any interest earned was paid out to the bank and at the end of 5 years the principal was fully repaid. As a result by the end of 5 years I had made no profits and have taken a loss. Did I have to pay income tax every one of those years?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Juat Answer, and pleased to be able to help you with your queation. You are liable for Income Tax on the interest received [the fact that it was paid to the bank is irrelevant]. However as the bods presumably had tax deducted before payment than providing your income, after deduction of your personal allowance, does not exceed GBP 31785 then the tax bill is effectively settled. If you are in a higher tax bracket then there will be more to tax pay. I am so sorry to have to rain on your parade.
bigduckontax and 2 other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.
Thank you for your support.
You need to declare this income on your self assessment tax return.