Terminal bonus

Upzeecreek

Can anybody clarify if a terminal bonus can be withdrawn from an onshore bond spread over a few tax  years or does it have to be taken in one go on closure of the bond?
I can find lots of information on withdrawal of initial investment at 5% / year but nothing on the terminal bonus. 
It's rather a large gain which will result in loss of personal allowance if taken in one go so hoping to take over a few tax years. Is this even possible? Thanks 

dunstonh

Can anybody clarify if a terminal bonus can be withdrawn from an onshore bond spread over a few tax  years or does it have to be taken in one go on closure of the bond?

Terminal bonuses accrue daily.     Each surrender value will have some terminal bonus in it (if any).  

It's rather a large gain which will result in loss of personal allowance if taken in one go so hoping to take over a few tax years. Is this even possible?

This is why your offshore bond will be made up of a number of segments/policies.  Maybe 100.  Maybe even 1000.   You can surrender those segments individually. Its routine planning that advisers do all the time when moving money to other wrappers to use annual allowances or spending needs (or other).   You just need to find out how many segments/policies there are and then decide how many segments to surrender.    The WP fund itself is largely irrelevant in that.

Upzeecreek

Thank you for your reply.
The initial investment/ bond value is to be taken across all the segments according to Aegon.
There is no financial advisor involved here so why I'm asking the question.
It's what's left invested( terminal bonus) that Im wondering is  the most tax efficient way to remove that from the bond ? Ie not lose personal allowance.

dunstonh

The initial investment/ bond value is to be taken across all the segments according to Aegon.

That is one method.  It is not the only method.   If you plan to draw out over multiple tax years, then that could be the wrong method from a tax point of view.     If you exceed the cumulative unused 5% deferral allowance it will trigger a chargeable gain on the whole bond.   Whereas policy segments will only trigger gains on those segments.  You can also mix and match the two methods.    

Aegon do not give advice.  They take instruction.  They won't tell you which way is best.

MeteredOut

Is this Investment Bond (or similar)? My wife has one of these and is covered by these rules

https://adviser.scottishwidows.co.uk/assets/literature/docs/1_337850-3.pdf

But, that has no reference to terminal bonus, so perhaps what you have is different.