The Inland Revenue has blocked a loophole which one investment company was exploiting to offer tax-free returns from what was effectively a three- month deposit account. The Close Capital Account from Close Fund Management was offering a safe return that would outperform normal building society accounts by not being subject to income tax. But the Revenue says the return, estimated at 5.2 per cent a year, would be taxable as of last week. A Close spokeswoman would not say how many people had opened accounts, and claimed it was not certain they would be affected by the change. Close has a helpline for concerned investors. Call 0800 269824.
National Savings has cut interest rates by 0.25 per cent on a range of products: First Option Bond, Investment Account, Ordinary Account, Income Bond and Deposit Bond (see Best Savings Rates table, page 15).Reuse content