Index-linked Savings Certificates
Index-linked Savings Certificates are lump sum investments that are linked to movements in the Retail Prices Index, a commonly used measure of inflation. They also earn extra interest at rates which increase every year over set periods of time, called ‘terms’. They are free of UK Income Tax and Capital Gains Tax – [...]

Under normal circumstances, savings interest has tax taken off at 20% before you receive it. If you are a higher rate taxpayer at about 40%, you owe tax on the difference. If you have a low income you may be able to claim tax back. Savings income is added to your other income and taxed [...]