Quick Bond surrender question....
Amy
Member
We have a client who has recently surrendered 41 whole segments from their offshore bond (Feb 2025) and now wishes to surrender the remaining segments. The last partial surrender across all segments was completed in May 2023. Policy year runs November to November. No previous chargeable gains.
The segments to be surrendered pre and post tax year were calculated on the basis that the chargeable gain when added to their income would keep them under £100k income for each tax year.
The adviser has sent the following question:
**Does a full encashment before the next anniversary policy year trigger an additional tax charge when last yrs encashment is considered? **
Personally, I think the answer is no as we have surrendered full segments in February and no partial surrenders during the current policy year. To clarify , we have already confirmed there will be a tax charge on the gain, I don't think the fact the segment surrenders happening in the same policy year have any additional impact.
Comments
Last years segments don't exist so don't have an impact on the surrender of this years segments.
Thanks Les, exactly as I thought.