advice please-investment bond & tax

hondagirl36

Hi folks, I have an investment bond that Im cashing in as we are skint! It has a 6 month derferment on it for one bit of the bond, property allocation. Can anyone help me get my head around what tax I might have to pay in the following circumstances..
A- cash in the bond completely in 6 month time
B-cash in the other bits now and wait for 6 months for the rest.
Ive been told the tax implications are different for the two options, Im not a higher rate tax payer and the bond has grown by only about £1500 in 5 years. Im intending on re investing the amount straight away, will I have to pay tax on it and if so anyone know about how they calculate how much?
The total is approx £15k with £3k deferred for 6 months.
Thanks you!!

dunstonh

Basic rate tax is considered paid already. Only if the gain takes you into higher rate tax will you have a liability for further tax. There is also a relief to reduce that as well potentially called top slicing relief.

Take the gain, divide it by the number of complete years held and then add that slice to your income. If it doesnt take you into higher rate then you have no further tax to pay.

Im intending on re investing the amount straight away

Why not leave it where it is then? Most bonds have wide fund choices and the charges often improve after the 5th anniversary. Seems pointless cashing in one tax wrapper to put it into another unless there are good tax reasons for doing so. Although to be honest, what the heck is £15k doing in an investment bond!?!