From: mike 
Newsgroups: uk.finance
Subject: Re: Is tax free investment a good idea for non-tax payer?
Date: Fri, 27 Aug 2004 09:34:08 GMT

On Thu, 26 Aug 2004 23:38:31 +0100, GSV Three Minds in a Can
 wrote:

>
>>Also, do I have to pay tax on any non-tax-free(!) investments, given that the
>>interest from such investments will be less than my personal allowance (ie is
>>tax on investments independent of personal tax allowance)?
>
>Depends on the investment. If you stick to things which pay interest, 
>then you can get any tax back - better yet you can fill in the R85 form 
>and get interest paid gross (no tax deducted).

Thanks very much for that GSV - much appreciated. Just to follow up on that last
point...

I'm thinking of putting most of the money into short term (1 year) bond(s),
purchased via the bank. as they  mention the R85 you pointed out. So the
personal tax allowance is *not* just applied just to "Earned income from
employment". The bloke down the pub :-) seems to think is it - which seemed
mighty odd to me. I'm also trying to decide whether I should classify myself as
retired - or unemployed (unemployable) (sigh).