Single premium investment bond (taxation query)
Discussion
Investments made into a single premium investment bond:
24/11/1997 40,000
22/02/2000 75,000
01/05/2009 50,000
Total 165,000
Withdrawals within the 5% tax free allowance to date have been:
07/06/2013 25,000
30/09/2013 40,000
Total 65,000
Current value is 92,500.
If the bond was fully surrendered am I right in thinking there is no liability to income tax (my 'man maths' assumes 100,000 of the original investment is left as premiums paid in, but as the bond is showing a value of 92,500 there is a loss of 7,500? I have looked at HMRC's website but it is not clear).
24/11/1997 40,000
22/02/2000 75,000
01/05/2009 50,000
Total 165,000
Withdrawals within the 5% tax free allowance to date have been:
07/06/2013 25,000
30/09/2013 40,000
Total 65,000
Current value is 92,500.
If the bond was fully surrendered am I right in thinking there is no liability to income tax (my 'man maths' assumes 100,000 of the original investment is left as premiums paid in, but as the bond is showing a value of 92,500 there is a loss of 7,500? I have looked at HMRC's website but it is not clear).
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