Phased Surrender of Offshore Investment Bonds

Hello.

We have several clients who have received segments of investment bonds gifted from their parents.

One client in particular has 2 offshore bonds with combined surrender value £220,000 and a gain of £160,000. This is over approximately 25 years, so the slice would fall within basic rate. Her salary is her only other income and is £40,000.

We have explored surrendering over several tax years so she can retain her personal allowance.

There was a rule change for bonds varied since 2013 (including assignment I have read) meaning if there is an excess event, any future top slicing is only from the last event. Since we would phase these investments over several tax years, we would do this by fully surrendering some of the individual segments each year. Would this create a problem for future top slicing?

Please let me know if there are any other key considerations I should take into account.

Thanks

Charlie

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