Personal Investment plan Tax liability on cashing in

dunstonh

Well, got the reply, they never answered the question. Just a load of speel about what the fund is invested in - which I already knew.  Nothing on tax liability, will call them again on Monday.

I doubt they will answer as they typically avoid personal tax scenarios and usually refer you to an accountant or IFA.

When we took out the product I suspect we were lied too about there being no tax liability. 

It all depends on your memory.  Changing one letter in a sentence can change the context.   e.g.  would or could.   You may not have any further tax liability but they are also not tax free as they have had internal taxation.

At the point of taking it out, the point of becoming a higher rate taxpayer was greater than it is today.  So, maybe there we no expectation that you would go into the higher rate band after top slicing relief.   Maybe you still wont go into higher rate band after top slicing relief.   (I assume from your replies you have confirmed it is the life assurance version and not the UT version - both of which used the PIP name).

Taraxacum1

dunstonh said:

Well, got the reply, they never answered the question. Just a load of speel about what the fund is invested in - which I already knew.  Nothing on tax liability, will call them again on Monday.

I doubt they will answer as they typically avoid personal tax scenarios and usually refer you to an accountant or IFA.

When we took out the product I suspect we were lied too about there being no tax liability. 

It all depends on your memory.  Changing one letter in a sentence can change the context.   e.g.  would or could.   You may not have any further tax liability but they are also not tax free as they have had internal taxation.

At the point of taking it out, the point of becoming a higher rate taxpayer was greater than it is today.  So, maybe there we no expectation that you would go into the higher rate band after top slicing relief.   Maybe you still wont go into higher rate band after top slicing relief.   (I assume from your replies you have confirmed it is the life assurance version and not the UT version - both of which used the PIP name).

My memory is crystal clear, I was specifically looking for a tax free product, otherwise I would have left in in a standard savings account.  The quarterly income I have had from the fund is a lot less than the minimum suggested.  Re the capital invested, £100k, I was told this should increase to £115-120 after ten years.  Fourteen years on its worth £92k, so I doubt that is classed as a gain!  I am nowhere near the 40% tax threshold, not on my pension.