UK investment bonds: taxation facts (32 minutes)

What you need to know about the taxation regime for UK Investment Bonds.

Tax is only payable when a gain is calculated on a chargeable event
Where the policyholder is a company, then the chargeable event rules do not apply
Part surrenders of up to 5% of accumulated premiums can be taken without any immediate tax charge
Where there has been a part surrender, a calculation must be made at the end of the ‘insurance year’ to see whether a gain has arisen, and if so its amount
It is important that any chargeable event gain is attributed to the correct person and in this regard, special rules apply for bonds held by trustees
Chargeable event gains on UK bonds are not liable to basic rate tax
It is important to understand eligibility for deficiency relief and time apportionment relief

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