National Saving Bank Interest - Really dont understand this...

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I have been taught that the first £70 of NSB interest is tax-free (non-taxable) but in the question 1 in the mock1 exam at the back of the book (FTC Unit19 FA2005) the full amount is taxed??? does anyone understand this area, what am i missing?

Thanks

Keiron

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:National Saving Bank Interest - Really dont understand this...

    I seem to recall a muttering that it may be scrapped when I did PTC last year. So maybe the book pre-empted the action. Don't remember hearing that it was scrapped in the budget.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:National Saving Bank Interest - Really dont understand this...

    national savings have recently changed from the ordianry account to easy saving account and the first £70 has been scrapped, this is why it is confusing, so perhaps they wont bother anymore as it is no longer in use

    hope this helps
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:National Saving Bank Interest - Really dont understand this...

    after re reading your question you need to find out from the post office when the national saving ordinary account was scrapped and the easy account put into force, this will answer your question.(easy account is taxed from source, not after the first £70 as )i will try to answer more if you need it

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