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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15914
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My mother (aged 91) has some money in investment bonds

Customer Question

My mother (aged 91) has some money in investment bonds (approx. £25,000) and wishes to withdraw a small amount of it (£3,000) for a short time while she is selling her house, to be reinvested when she has moved. Should she take small amounts across all the bonds or cash in 3 bonds? The company concerned has asked her to decide and says it may have different tax consequences - we have no idea what consequences, or how much tax she would have to pay.
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.

Hi.

Can you tell me how long your mother has had the bonds and whether she has withdrawn cash from them at all since the investment was made. What is the level of her annual income?

Customer: replied 1 year ago.
She has had the bonds for approx. 25 years. She used to draw some income from the interest until she discovered it was eating into the capital; she stopped taking any of the interest so it has now risen again. Her annual income is approx. £15,500. If it would be helpful I could ring you.
Expert:  TonyTax replied 1 year ago.

Thanks.

It won't make any difference to your mother tax wise. She is a basic rate taxpayer and as any chargeable event gain will be treated as basic rate tax paid assuming she invested in UK bonds, she will have no tax to pay.

I hope this helps but let me know if you have any further questions.

TonyTax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Customer: replied 1 year ago.
Sorry, I don't understand the wording of your answer and need to be able to explain it to my mother.
Expert:  TonyTax replied 1 year ago.

Thanks.

I will call you at 1pm.

Customer: replied 1 year ago.
Thank you for your help.
All is well - withdrawal from across all segments was the way to go.
Jane

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