If you hold your Bond in a IFISA then no tax will be deducted on your interest. If you are a private investor or a trust and your Bond is held outside of an IFISA account then the Bond interest is subject to income tax and 20% will be withheld by Heritage at source. Corporate investors will not have tax deducted at source. It is your responsibility to report the interest on your tax return as appropriate and pay or reclaim any tax that may be due. This Bond is a corporate bond and is eligible for the personal savings allowance.