Legal and General investment bond

pepsimaxflyboy

My parents need to free up some funds to complete a house purchase. They have some money invested in a Legal and General investment bond which is in some way sheltered from tax. They can each withdraw 5% of the initial deposit for each year it’s been held without tax penalty.
My mothers income is below the tax threshold and neither has used any capital gains allowance in the past. So, before they incur the costs of getting advice from an IFA, does anyone out there know whether, on the face of it, either of them can withdraw additional funds and if so what would the tax implications be?

xylophone

They should have a booklet detailing features of the investment - check re tax treatment, particularly chargeable events.

http://www.legalandgeneral.com/library/technical-centre/taxation-and-trusts/Intro-chargeable-event-taxation.pdf
may help.