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TonyTax
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I invested £5k in a flexible Bond in 1999. The value of the

Resolved Question:

I invested £5k in a flexible Bond in 1999. The value of the bond, now held by Friends Life, is £10312. If I cash in the whole amount this FY will I be liable to pay tax on the full amount, a part of it or none? I am currently a standard rate tax payer.
Regards
John
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Is the bond a UK or an offshore bond? Have you ever made any cash withdrawals from the bond? What is the level of your gross annual income?
Customer: replied 1 year ago.

UK bond, and I've never made any cash withdrawals from the bond. Gross annual income is £27800.

Expert:  TonyTax replied 1 year ago.
Thanks.Take a look at HS320 here for information on the tax position for the type of bond that you have.You won't have any tax to pay as the gain will be treated as basic rate tax paid. The top-slice will be 1/16 of £5,312 (£10,312 - £5,000) and that 1/16, £332 will be added to your income to determine whether you breach the 40% tax threshold at £42,385. Clearly you won't.I hope this helps but let me know if you have any further questions.
Expert:  TonyTax replied 1 year ago.
I have to go out for a while but will be back at my desk in about 25 minutes to answer any follow up questions that you may have.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15886
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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