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bigduckontax, Accountant
Category: Tax
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Tax summary and explanation of typical charges needed re

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Tax summary and explanation of typical charges needed re Investment Bonds held in trust.
Hello, I am Keith, one of the experts on Just Answer, and please to be able to assist. Could you please expand upon your question a little.
Customer: replied 2 years ago.
Yes, I am writing a Will and trying to provide Trust terms/wishes regarding 2 discretionary trusts. Firstly I think I am right in saying that currently up to 5% per annum can be withdrawn from an investment bond in trust, and that as this is "return of capital" it is effectively tax-free for (say) 20 years and avoids the trustees having to make a tax return ... is this correct please? Secondly I am confused about liikely charges but can you confirm the first bit?
The taxation position is extremely complex so I do require a little more detail. Taxation has a very comprehensive article on the subject which you cna find here:
Customer: replied 2 years ago.
That link is subscriber only unfortunately.
Customer: replied 2 years ago.
Are you still there?
That's funny, I am not a subscriber and it came straight up on my PC! However you are correct in your surmise regarding 5% per annum withdrawals; not drawn moneys can be carried forward thus expanding the 5% envelope slightly.
Try this link:
Customer: replied 2 years ago.
Thank you. ***** am confused about charges. As I understand it, unbundled funds are banned for direct investors. However I am seeing different fund classes on the lists of available investments from (e.g.) Aviva as a bond provider. This sounds as if bond providers are retaining obsolete fund classes providing them with opaque revenue. How can I get to the bottom of this?
I regret that Just Answer protocol forbids me giving direct advice on products.
To get to the bottom of your reaearch would involve extensive reading of the small print, but I would not be surprised if you found your theory correct.
Customer: replied 2 years ago.
OK thanks for the help
Delighted to have been of assistance.
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