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23rd May 2018

Prudential: Thoughts about bonds

A bond is normally a single premium whole of life contract which offers many features and benefits. In Helen O’Hagan, Technical Manager at Prudential’s opinion, here’s some of the salient features of bonds. 

Bonds are subject to a unique regime called the chargeable event regime under ITTOIA 2005 (income tax (trading and other income) Act 2005). Chargeable events are triggered by the following events - 

  • Death of the last of the lives assured
  • Assignment for money of monies worth
  • Maturity of a capital redemption bond
  • Encashment above the 5% cumulative allowance or
  • Surrender of the segments or full bond

They are subject to income tax in the hands of individuals and trustees.

Read full article here.

Bonds, Technical, Tax, Trust & ISA

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