Most are stocks issued with a fixed interest rate, which is paid half-yearly. At the end of the period of the investment, the government redeems the stock at the known published amount. For all stocks bought after 5th April 1998 interest is paid without deduction of tax at source unless specifically requested by the holder. Under this system tax is deducted at source from wages and pensions. The Inland Revenue issues a code number so that employers or pension providers can deduct the correct amount of tax.
Some taxpayers have to make interim tax payments during the tax year.
The first payment on account is due on 31st January each year. It is based on half your income tax liability for the previous tax year. The second payment is due 6 months later, on 31st July. This is the same date by which the first payment on account for the current year should be paid. Everyone is entitled to a basic Personal Allowance.