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bigduckontax
bigduckontax, Accountant
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My fixed rate isa is near maturity. If I close it and buy premium

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My fixed rate isa is near maturity. If I close it and buy premium bonds will the lump sum be taxable for the time it is in my current account - very brief time intended?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. All the investments you mention are tax free under the UK taxation regime. If you earn interest on the moneys in your current account then these would be subject to Income Tax (IT), but the sum involved would be very small and in any event the bank would deduct IT at source. Media comments that Premium Bonds are an even worse investment than they used to be as the prize pool has been further reduced. From next tax year, only a few weeks away now, the first 1K of interest from deposits will be tax free which may be the death knell of ISAs for most investors. I do hope that you have found my reply of assistance.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

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