We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Do I pay tax if I cash in my Prudential Flexible Investment Plan?
tapyeno
Posts: 25 Forumite
I have an FIP valued at £19, 883. My initial investment was £11 000 in 2011. I need to withdraw some of my investment plans now, but fear if I withdraw all the funds from this plan i would have to pay tax on it. Can anyone advise me if I'd have to pay tax and how it would be worked out. I receive pensions at present approx £40 000 before tax. Many thanks.
0
Comments
-
This is an investment bond not a pensions product.
The normal tax treatment on these is that you can take out up to 5% per tax year of the amount originally invested without being subject to tax. Above that, and it would be subject to income tax at your marginal rate (which sounds like it would be basic rate for about the first £10k if you are in England, and quite a lot less if you are in Scotland).0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.6K Banking & Borrowing
- 254.5K Reduce Debt & Boost Income
- 455.5K Spending & Discounts
- 247.5K Work, Benefits & Business
- 604.4K Mortgages, Homes & Bills
- 178.6K Life & Family
- 262K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards