An overview of how tax is managed.
Tax payments are related to individual circumstances and may change in the future.
If your investment is held within the CARLTON Bonds IFISA, or you've invested via your SIPP or SSAS, then no income tax will be payable on your interest income.
If your investment is not held within any of these tax wrappers, your interest income will attract income tax. In this case, we are required to withhold 20% of your interest and pass this on to HMRC on your behalf. However, if you are a higher or additional-rate taxpayer, you will have to account for further tax within your self-assessment tax return.
Investments made via UK corporations will be paid without any tax deductions, which may also be possible if your investment is made via an overseas corporation. This will likely attract corporate tax where applicable.