With profit bonds closure

Nellie15

Hi, we are buying a second home and are trying to raise the deposit, we are remortgaging our family home (17%) to fund the rest of the cost.
Most of our investments / deposits are coming from ISAs but some iare coming from a with profits bond. It was opened in 1996 with £17000, we withdrew £8000 in 2004, now the closing figure including terminal bonus us £30000. It is solely in my husbands name and he is just into the higher tax rate ( next months wages tip him over the threshold) so we are worried about tax implications, will it make a difference if we wait till 5/4/18 to wirpthdraw ? Will we need to pay the higher rate of tax ? It does state that basic tax pyres are ok .
Please help thanks

Malthusian

Onshore or offshore?

What is your total income?

Was the 2004 withdrawal taken across all segments or by encashing individual segments in full, or a combination of both?

It may be better for him to assign the bond to you and then you would encash it. However the taxation of bond gains is complicated and you haven't given us enough information to be definitive.

dunstonh

It is solely in my husbands name and he is just into the higher tax rate ( next months wages tip him over the threshold) so we are worried about tax implications

What about assigning the policy to you? Would that avoid the issue?

It does state that basic tax pyres are ok .

Only if the gain after top slicing relief doesnt take you into the higher rate band.

ValiantSon

Nellie15 wrote: »

Hi, we are buying a second home and are trying to raise the deposit, we are remortgaging our family home (17%) to fund the rest of the cost.

Has your mortgage provider agreed to this use of funds? I'm not absolutely convinced that most would allow you to raise a mortgage on one property to fund the purchase of another. If you don't give them an honest answer as to why you want the money then you would be committing mortgage fraud and could end up in a lot of trouble further down the line.