The personal savings allowance & investment bonds

By Kieran Drew
In August 10, 2016
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9584116_sWe have written a few articles on the most recent budget, and specifically on your new savings allowances. Whilst we like to think we know everything, we are often surprised by snippets of information we find hidden from view.

One such snippet we came across recently relates to your new savings allowance and bonds. It would seem that chargeable event gains made on investment bonds can also be attributed to the new savings allowance. A chargeable event falls into a number of categories including death, partial withdrawal, maturity and surrender.

We have researched this with HMRC and can confirm there are no details of this anywhere to be found, so very sneaky indeed.

If you are considering taking action that will result in a chargeable event occurring on your investment bond, we suggest that you speak to your accountant to find out if and how you can mitigate some of this tax by attributing it to your new savings allowance. Whilst it may not be possible in every eventuality, it is definitely something to keep in mind and utilise if possible.

 

Disclaimer

Your capital is at risk. Investments can fluctuate in value and investors may not get the amount back they invest. Past performance is not a guide to future performance. Tax rules can change at any time.

Please remember your home or property may be repossessed if you do not keep up repayments on your mortgage.  We give clients the option to pay for mortgage advice by fee rather than commission. Equity Release refers to lifetime mortgages. To understand the features and risks, ask for a personalised illustration.

 The Financial Conduct Authority do not regulate, Will Writing, Buy to Let Mortgages, Auto Enrolment, Tax Advice and Estate Planning.

 The opinions contained within this blog, do not constitute financial advice and no action should be taken based on this content alone.

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Statement

Redwood Financial Family Wealth & Estate Planners Ltd is Directly Authorised and regulated by the Financial Conduct Authority. FRN number 774469.

Disclaimers

The Financial Conduct Authority do not regulate, Will Writing, Buy to Let Mortgages, Auto-Enrolment, Tax Advice and Estate Planning. Your capital is at risk. Investments can fluctuate in value and investors may not get the amount back they invest. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. https://register.fca.org.uk/

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Telephone: 01489 877547
Email: info@redwoodfinancial.co.uk

Company information

Redwood Financial Family Wealth and Estate Planners Ltd Company Number: 08926661
Registered Office Address: Wellesley House, 204 London Road, Waterlooville, Hampshire,