Onshore Investment Bond Gain.

Grandst2

If the basic rate of income tax is raised will the tax already paid by the insurance company cover it or will more have to be paid. As it is a large gain over 25 years it would be very expensive and I'm tempted to cash it in right now.

Jeremy535897

An amount equal to the basic rate of tax is deemed to be paid, but that legislation could be changed. It is provided by section 530(1) ITTOIA 2005, which says:
"An individual or trustees who are liable for tax on an amount under this Chapter are treated as having paid income tax at the basic rate on that amount."

Grandst2

Thank you for the reply. As the basic rate hasn't gone up for the last 50 years it's something I never saw coming.

Dazed_and_C0nfused

Grandst2 said:

Thank you for the reply. As the basic rate hasn't gone up for the last 50 years it's something I never saw coming.

Saw what coming 🤔