Any income you earn from WiseAlpha Investment Bonds (Smart Interest) forms part of your overall income that is subject to personal or corporation taxation rules. Interest payable to Bond holders on money invested is charged to income tax in the tax year the interest is received. For example, interest received on 31 December 2023 is received in and taxable for the tax year 2023/24.

You should declare any income and capital gains to the HM Revenue & Customs on a self-assessment tax return if you are an individual or inform your local tax office. IFISA or SIPP account holders are not required to declare interest as the income is tax free and withholding tax does not apply.

If you are a UK resident withholding tax has been deducted and paid on your behalf to HMRC and is currently based on the basic rate of 20%.

The additional tax you have to pay will depend on your personal rate of income tax and any additional amount above the 20% withholding tax deducted already at source should be paid on your self assessment tax return.

If you are in any doubt about your tax position you should seek independent tax advice.