Let me take a look at this and I'll get back to you in a bit.
Take a look at HS320 if the bond is a UK bond or HS321 if the bond is an offshore bond.
if you cash in the bond after 9 complete years, you will each make a chargeable event gain of £2,500. Assuming the bond is a UK one, the gain will be treasted as having suffered tax at 20%, £500. Your husband is a basic rate taxpayer and will clearly have no tax to pay if the bond is a UK bond. If you divide £2,500 by 9, you get £278 which you should add to your income to see if it takes you into the 40% tax band which starts at £43,000. If it does, then you will have tax to pay of a maximum of £278 @ 20% (40% - 20%) x 9), ie £500.40. If you earn £40,000, you won't be a higher rate taxpayer once you add in the 1/9th of your share of the gain and there will be no tax to pay.
If the bond is an offshore one, then there will be no 20% tax credit treated as paid so you will each have a liability of £500.
I hope this helps but let me know if you have any further questions.
Hi.I'm just following up to find out if my answer helped or if you have any further questions.