Capital Bonds regular withdrawals and 'cashing in' ..

worn_out

Having a Bond for 17 years and wanting to withdraw all the original investment by year 20 having not withdrawn anything for the first few years..but ReAssure says there's a cap of 7.5% on regular withdrawals so need to ask for a 'special' 'one off' withdrawal to take anything above 7'5% ?

I don't understand this.. 

dunstonh

Investment bonds have a deferral allowance of 5%.  Any unused deferral allowance can be rolled up for use in later years.

However, if you choose not to use the deferral allowance or you exceed the amount of the deferral allowance then you start surrendering policy segments instead.     Some bond structures require the surrender of policy segments to be ln a single ad-hoc basis and not available with regular contributions.

worn_out

dunstonh said:

Investment bonds have a deferral allowance of 5%.  Any unused deferral allowance can be rolled up for use in later years.

However, if you choose not to use the deferral allowance or you exceed the amount of the deferral allowance then you start surrendering policy segments instead.     Some bond structures require the surrender of policy segments to be ln a single ad-hoc basis and not available with regular contributions.

do they roll over beyond 20 years because having not withdrawn in earlier years there isn't enough years left to withdraw all the initial investment. Does the surrender of policy segments happen automatically after 20 years regardless ?  Finally does the top slicing apply only once and only when you withdraw after year 20...so it's 'preferable' to withdraw (ad-hoc) a higher amount on the first withdrawal..(subject to staying under 40% tax)..?