Investment Bond Withdrawal

Texas_Pete

Hi

I posted this on the savings and investment board but was advised i might get more help here.


Hopefully someone can help with a query about a withdrawal from an Investment Bond.

The original investment was for £80,000 on 04/03/05.
In October 2008 – a withdrawal of £32000 was made. This created a chargeable gain of £16000 (that unwittingly created a tax bill at the time).
The current surrender value is about £63,000.

Would I be right in thinking I would be due no tax was I to sell this (this is in joint names – one basic rate tax payer, one higher rate)?

Based on :
(£63,000+£32,000) – (80,000+16,000)
(Surrender value + previous withdrawals) – (original investment + previous chargeable gains)

Thanks.

Cook_County

Texas_Pete wrote: »

Hi

I posted this on the savings and investment board but was advised i might get more help here.


Hopefully someone can help with a query about a withdrawal from an Investment Bond.

The original investment was for £80,000 on 04/03/05.
In October 2008 – a withdrawal of £32000 was made. This created a chargeable gain of £16000 (that unwittingly created a tax bill at the time).
The current surrender value is about £63,000.

Would I be right in thinking I would be due no tax was I to sell this (this is in joint names – one basic rate tax payer, one higher rate)?

Based on :
(£63,000+£32,000) – (80,000+16,000)
(Surrender value + previous withdrawals) – (original investment + previous chargeable gains)

Thanks.

Have you thought about corresponding deficency relief?http://www.hmrc.gov.uk/manuals/iptm/iptm3800.htm

Texas_Pete

I hadn't even considered deficiency relief. I'll look into that.