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Rakhi Vasavada
Rakhi Vasavada, Financial Advisor
Category: Finance
Satisfied Customers: 4543
Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
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In January 2010 my wife and I invested £160,000 in a Joint

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In January 2010 my wife and I invested £160,000 in a Joint Life Portfolia Bond, we surrendered the bond on 30th July 2015 and got a return of £204,446. My main question to you is, are we liable to pay tax on the gain of £44,446 and if we are how much?
as I understand the investment company have already paid corporation tax on the gain of the investment income and gains within the fund. The following information is on the documents received on surrender. Number of years for top=slicing relief = 5 Is any
tax treated as paid? Yes Amount treated as paid £8890 This is the last figure for the tax return in "Tax treated as paid" We are both company directors of our own company, Would you be able to calculate from the above information how much tax if any we need
to pay on the bond gain, or what should be the limit of our overall salary for period 6th April 15 to 5th April 16 to lesses our tax liability. Look forward to hearing from you
Submitted: 1 year ago.
Category: Finance
Expert:  Rakhi Vasavada replied 1 year ago.
Dear Friend, Hello and welcome. Thank you for providing an opportunity to assist you. Please remain online for a while as I prepare your reply
Expert:  Rakhi Vasavada replied 1 year ago.
From what I understand from your question, the bonds surrendered by you and the gains realized thereon will NOT be subject to any capital gains tax. It would be subject to your regular income tax rates and the amount of GBP 8890 would be taken as credit. So, there would be very little or nil tax payable on this gain as I understand from your situation. As you are aware, Top slicing is a relief available if an investor:Does not pay higher rate tax on other income (excluding the gain) but when the gain is added the investor becomes subject to higher rate tax, orDoes not pay additional rate tax on other income (excluding the gain) but when the gain is added the investor becomes subject to additional rate tax.Having said this, until GPB 31785, you will continue to remain in the lowest tax bracket. I am sure this would help. I wish you good luck. You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question. Warm Regards,
Customer: replied 1 year ago.
Dear Rakhi
Thanks for your prompt reply, because my wife and I are both company directors we get paid a dividend each month of £5500
between us, must we keep our income below a certain figure to avoid paying extra tax on the bond gain?
Thanks
Expert:  Rakhi Vasavada replied 1 year ago.
Dear Friend, Hello and welcome again. With the figure of 5500, you have lot of room. You can keep it below 30,000. I am sure this would help. I wish you good luck. You may please leave a positive rating if this helps as this is the only way we are compensated for assisting you. Alternatively, you may revert back with a reply if you need further assistance or if I have missed out on any aspect of your question. Warm Regards,
Customer: replied 1 year ago.
I take it that means £30,000 each, £60,000 in total between us.
Thanks
Expert:  Rakhi Vasavada replied 1 year ago.
Hello again. Yes, I mean 60,000 joint -- between you. Sorry I did not specify that. Warm Regards,
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