Bond Chargeable Gain Query
Paraplanning831
Member
Hi all, calculating chargeable gain on onshore bond and my manual calculation is showing as differently to online provider calculator tools that I have looked at (M&G, Quilter etc.) and unsure where the discrepancy is.
Previous withdrawal made in previous tax year, policy year running from December to December.
Please may I check if I am missing something here that the online calculator tools are using in their calculations that is resulting in this discrepancy?
Comments
It's the final year rule.
Your final policy year ends in the same tax year as your previous policy year end.
As such you make your final policy "year" (I assumed a 1/12 start date) 1/12/2024 to 27/02/26. When this happens you ignore any excess gains at the end of the previous policy year i.e the one that arose on 30/11/2025.
The provider when sending you your new gain certificate should be telling you to put the one they sent with the 21k excess in the bin and ignore it.
Hi Les, that's great thank you. So if any full encashment was delayed until the new tax year then I am assuming this no longer applies and calculation goes back to normal.