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Interest from Gilts, accrued income etc

This section is accessed via the data input tab within the tax return and allows input of interest from:

  • gilt-edged and other UK securities,
  • deeply-discounted securities and
  • accrued income profits.

Gilts etc.

Interest from Government stocks (gilt-edged securities or gilts) can be received with or without tax taken off.

  • Description – enter a brief description of the security, this does not appear on the tax return and is for memo purposes only.
  • Gross amount – enter the gross amount of interest before any tax was deducted.
  • Tax taken off – enter the amount of tax taken off, if any.

Deeply discounted securities

The return on an investment in deeply discounted securities is made up of a discount or premium payable on redemption. This discount or premium is the difference between the bond’s price and the value at redemption. The discount is always received gross.

  • Description – enter a brief description of the security, this does not appear on the tax return and is for memo purposes only.
  • Profit/(Loss) – enter the difference between the redemption or sale price of the bond and the amount paid for it. This can be a negative amount if a loss was made on the bond.

No loss can be claimed on gilt strips. For other deeply discounted securities a loss can only be claimed if the security has been held since 26 March 2003 and had been listed on a recognised stock exchange on or before that date.

From 2014, relief for losses on deeply discounted securities are limited. See HMRC Helpsheet 204

Accrued Income Scheme

For information on the Accrued Income Scheme see HMRC Helpsheet 343.

Enter current period profits and losses in the grid.

  • Description – enter a brief description of the Accrued Income Scheme transaction this does not appear on the tax return and is for memo purposes only.
  • Profit – enter the accrued income profit for the transaction.
  • Loss – enter the accrued income loss.

To delete a line from the grid, click the ‘trash can‘  button at the end of the line.

Accrued Income Scheme losses

This section shows how Accrued Income Scheme losses are offset against interest received.

  • Gross interest – Taxfiler will show the total gross interest from Gilts and Securities.
  • Net AIS profit/(loss) – Taxfiler will display the net profit or loss from the Accrued Income Scheme input grid.
  • Gross interest after AIS profit/(loss) – Taxfiler will show the total gross interest after adjusting for AIS profits and losses.
  • Losses brought forward – enter any Accrued Income Scheme losses brought forward from the previous period.
  • Net amount taxable – Taxfiler will calculate and display the net taxable gross interest (if any) after taking into account any losses brought forward.
  • Losses to carry fwd – Taxfiler will calculate and display a figure of Accrued Income Scheme losses to carry forward. This figure will be transferred to next year’s tax return as the brought forward loss.