NATIONAL SAVINGS BONDS

Southland Times, Issue 24598, 21 November 1941, Page 3

NATIONAL SAVINGS BONDS

TAXATION EXPLAINED “There appears to be some misconception about taxation on National Savings bonds which are being specially featured in the money-ball and flag schemes at post offices,” stated Mr W. G. Nield, district organizer for the National Savings scheme, yesterday. “These bearer bonds are obtainable in denominations of £l, £lO, and £lOO, costing 17/6, £B/15/- and £B7/10/respectively. Social Security and National Security tax charges on the interest accruing are allowed for in the prices of issue, and holders are not required to include such interest in the annual declarations of income relating to the charge and tax. “For income tax purposes, however, the differences between the present values of the bonds and the redeemable values are deemed to be the income derived from the bonds. A proportionate part of such income to March 31 of each year should therefore be included in the holder’s income tax returns. The following table explains the value

of the bonds: £1 £10 £100 £ s d £ s d £ s d Issue price Social and Nat. 0 17 6 8 15 0 87 10 0 Security charges in purchase prices Present value Interest during 0 0 0 17 3 3 0 8 2 12 6 6 1 86 5 0 0 currency 0 2 9 1 7 6 13 15 0 Redeemable value 1 0 0 10 0 0 100 0 0