Expats who are looking to cash in on the UK Government’s new pensioner bonds are being warned there are conditions they will need to meet if they are to benefit.
The 65+ Guaranteed Growth Bonds have been so popular in the UK since their launch on January 15 that the National Savings & Investments (NS&I) website crashed and phone lines were jammed as pensioners rushed to sign up.
The products pay 2.8pc for the one-year bond and 4pc on the three-year bond. These rates, which are substantially higher than those offered by banks and building societies, are before tax. Expats can reclaim tax if they are a non-tax payer within their country of residence. However, there are some conditions.
A NS&I spokesperson said: “People that live in other countries can apply for 65+ Bonds if they have a UK bank or building society account in their own name which can receive BACS payments. This is subject to local laws and regulations – for instance US citizens and/or those who are US residents for tax purposes cannot purchase 65+ Bonds due to restrictions.
“For those applying by post, a cheque will need to be provided that is drawn on a UK bank or building society account in the customer’s name.”
Chancellor George Osborne announced earlier this week that the scheme will be extended by three months and an additional £5 billion worth of bonds are likely to be made available. It means one in 10 pensioners will benefit from a total of £15 billion-worth of bonds prior to the general election.