Transferred WPBs and Tax? Advice please

linclass

Hi,
I've recently surrendered my off-shore w/profits bonds, now in my Building Society. I've received letter from the Off-shore company advising and including a certificate I should give to HM Tax office.

This Cert suggests I've got a chargeable gain of > £11k - and that I should pay tax on it.

This is the question. I assume this £11k is over the duration of the investment - > 6 years - I opened it in 2002. I haven't been a tax payer since then, I haven't worked.

Husband thinks that as this figure is spread over the 6+ years, I shouldn't pay any tax. I think I should. I don't want to!!! What should i do please?

Many thanks

LL

oldwiring

Might this help:D http://www.adviceonline.co.uk/topicalcontent/with_profit_bonds/

Robertpestonrules

Cap gains, is due in the tax year when the gain is realised. Everyone is allowed a tax free amount of gains in any one tax year (currently I believe £9600)

SO I believe you will need to CGT on £1400 @18% (assuming this is your only capital gain this year)

However, I am NOT a chartered accountant!!

linclass

oldwiring wrote: »

Might this help:D http://www.adviceonline.co.uk/topicalcontent/with_profit_bonds/

Hello OW and thanks very much for this link. Mmm. I'll have someone else with me and go through the whole site I think! Not seen this one before..

xx

dunstonh

Can you verify if it is onshore or offshore. Your post says offshore but the responses above range from onshore WPBs to unit trust taxation.

Also, when you say you encashed it and put it in the building society, did you do that within the bond or did you actually close the tax wrapper as well? It sounds like you transferred the money and closed the wrapper but want to make sure.

linclass

Robertpestonrules wrote: »

Cap gains, is due in the tax year when the gain is realised. Everyone is allowed a tax free amount of gains in any one tax year (currently I believe £9600)

SO I believe you will need to CGT on £1400 @18% (assuming this is your only capital gain this year)

However, I am NOT a chartered accountant!!

Hi RobertP, thanks for your reply. Why 18% ? I don't pay tax - my pension is £197 per MONTH. This is my only income. I suppose it would be classed as CG, even though it's interest gained...

xx

linclass

dunstonh wrote: »

Can you verify if it is onshore or offshore. Your post says offshore but the responses above range from onshore WPBs to unit trust taxation.

Also, when you say you encashed it and put it in the building society, did you do that within the bond or did you actually close the tax wrapper as well? It sounds like you transferred the money and closed the wrapper but want to make sure.

Hi H Dunston, yes. They're Isle of Man W-PBs (Axa). I've fully surrendered them (last week) and they're currently in my B.S. acc until I decide what's to do next.

xx

linclass

Sorry for bumping this back up, but what with all the Icesave, Iceland, Kaupthing messages etc etc, my query's getting further down the list and although not as interesting as the above mentioned, I would appreciate greatly if anyone could advise,

Many thanks

LL