PIBS and Taxation

If you have PIBS (Permanent Interest Bearing Shares) as an investment, then you will be required to pay income tax on any interest earned; however, this can be counteracted by nesting the PIBS in an a SIPP (Self-Invested Pension) or ISA (Individual Savings Account).

As PIBS are subject to special tax provisions, any loss or gain that accrues when the PIBS is disposed is not counted as a chargeable loss or profit for capital gains tax purposes.