Taking money from a bond
Learn how to take money from an investment bond. Discover the differences between partial and full surrender, and how they affect tax and allowances.
Order of Taxation
Learn how different types of income are taxed and how they fit into a client’s income tax calculation.
Learn the order of UK taxation for different types of income
The main categories of income are: non-savings non-dividend income, savings income (including international bond gains), dividend income and UK bond gains. It is essential to be aware of the allowances and tax bands available to set against the different types of income.
Different types of income are not taxed randomly: there is a specific order in which allowances and rate bands are set against earnings, savings interest, dividends and bond gains.
This briefing note explains that order, including investment bond* order of taxation, how the personal allowance and savings allowances are applied, and what it means when clients have multiple income sources. The briefing note covers how investment bond gains are taxed alongside other types of income. It will help you forecast effective tax rates more accurately, understand the order of taxation for investment bonds versus other income, and structure withdrawals and investments to use the available bands as efficiently as possible.
Read more about the order of taxation for investment bonds
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Calculating multiple chargeable gains
Learn how to accurately calculate multiple chargeable gains with our comprehensive guide. Maximize your profits and avoid costly mistakes.
Taxation of investment bonds held in trust
A look at who’s liable for income tax on a chargeable event gain for a bond held in trust.
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*Whole of Life Assurance Policy or Capital Redemption Bond