Assignment between bond gains from excess withdrawals

Colinstewart76

An onshore bond has an anniversary of 1 December, held in Discretionary Trust (settlor is still alive). A large withdrawal accross all segments was taken in January this year - more than the tax deferred allowance. Subsequently the bond has been assigned to a beneficiary who wants to surrender the bond, BUT there is a suspended fund in there, so instead would like to withdraw what they can now, another large withdrawal across all segments, and surrender the bond when the suspension is lifted.

I think I am right in saying that provided the fund suspension is lifted and the bond is surrendered before 1 Dec 2026, the gains from the excess withdrawals in Jan and now will be cancelled (final bond year) when it's surrendered. The gain calc will then be based on full surrender and apportioned between the settlor and the beneficiary.

What happens if the bond cannot be surrendered this year and specifically, how will the gain arising on the withdrawals be apportioned between the Settlor and the Beneficiary? Is it the same principle? And should we attempt to estimate the apportionment, or ask the provider?