I have just been handed a tax return for someone who holds 3 1/2% war loans. I remember from my exam days that this was something the examiners went on about ad nauseum, but something you rarely meet in practice. A little bell is riniging in my head and telling me there is no tax to pay on the interest, or is it just exempt from cgt?
I can't find the answer and now it is really annoying me!
Can someone put me put of my misery?
Replies (8)
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Gilt
It's an exempt gilt for CGT purposes.
I wouldn't put money on it but I think the income is taxable (but paid gross)but it is a FOTRA (free of tax to residents abroad) investment.
But someone else may know better!
Cathy
P.S.
I think the reason it rings bells for the older tax practitioners is that, when gilt interest was paid net of tax in most cases (a long while ago!), this one was paid gross. So, like NSB interest, you had to look out for it and they used to chuck it into exam questions to catch candidates out!
Cathy
Another
Non taxable for IT purposes
...another pointless comment? Please read the other replies before commenting.