How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
Type Your Tax Question Here...
TonyTax is online now

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

This answer was rated:

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.
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 2 years ago.

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

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.
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 and other Tax Specialists are ready to help you