Dividends paid post bond surrender
Wildparaplanner
Member
Hi all,
We had a client where an offshore bond was surrendered and closed back in March 2026. The bond provider has now paid the client two payments which were in relation to a dividend payment from the underlying funds that were held in the bond at the point of surrender.
Can anyone shed any light on how these dividends will be taxed given the bond was surrendered in March and we already had a chargeable event certificate? Would (or should) these have already been factored into the certificate? If so, does that mean they aren't taxable as "dividends" as such, and are in fact just a later payout of the proceeds of the original surrender?
Thanks
Wild
Comments
If the client has received the dividend payments, I'm assuming it was before the ex-dividend date when the funds were sold. The dividends they were entitled to would have been reflected in the price of the fund when it was sold, so would have already been factored into the chargeable gain calc and the certificate - at least that is my understanding! I would double check with the bond provider, though.