Inheritance Tax Con By Chancellor

Tiggs_2

jem16 wrote: »

So basically the only effect is for those few higher rate taxpayers who are still higher rate taxpayers when the bond is encashed and not the many who choose an investment bond as they are higher rate taxpayers who will be basic rate taxpayers later?

In simple terms yes - but there are very few people who pay higher rate tax on a bond what with lower income in retirement, assignment of the bond to others, etc, etc.

Most of my retired clients still pay higher rate tax (apart from those lucky enough to derive the bulk of the income from 5% bond withdrawals ) but very rarely does anyone pay HRT on bond encashments.

jem16

Thank you for the explanation.

Good to hear the facts as opposed to the fiction.