The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
National Savings and Investments (NS&I) is both a government department and an Executive Agency of the Chancellor of the Exchequer. According to its website , NS&I is one of the largest savings organisations in the UK, with 25 million customers and approaching £150 billion invested. Perhaps best known for Premium Bonds, the organisation also offers a range of other savings and investments to suit different people’s needs, including Savings Certificates, Income Bonds and Children’s Bonds. All the products offer 100% security because NS&I is backed by HM Treasury.
Individuals can buy National Savings products online, but new investors will need to supply evidence of identity and address.
This guidance note gives an overview of NS&I products, but it is advisable to check the NS&I website as the products it offers are subject to change.
The usual health warning applies here: you cannot give investment advice unless you are authorised to do so by the Financial Conduct Authority. You can tell your client about tax efficient investments but you must not recommend any based on his circumstances.
See the Regulated investment advice guidance note.
Premium Bonds do not guarantee a rate of return because a Premium Bond is effectively a raffle ticket. There is a draw every month, and only if your number is drawn do you win a prize.
Premium Bonds are attractive because there is a possibility (however remote) that an investor could win a £1m prize at any time. This prize is tax-free. Premium Bonds can be cashed in at any time and the money returned.
The minimum purchase is £100 and the maximum holding per individual is £50,000. There is no minimum holding period.
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
To view our latest tax guidance content, sign in to Tolley® Guidance or register for a free trial.