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.
Time apportionment relief
Find out when Time Apportionment Relief applies and how it can reduce tax payable on chargeable gains.
Learn how time apportionment relief works in the UK
Where a policyholder triggers a chargeable gain on a life policy or capital redemption policy, the gain may be reduced if the policyholder has been resident outside the UK at any time whilst the policy was in force. The application of this reduction, sometimes referred to as ‘time apportionment relief’ (TAR), used to be limited to offshore policies. However, TAR was extended to apply also to onshore policies effected on or after 6 April 2013.
What is time apportionment relief? Clients who have spent part of an Investment Bond’s* life abroad may not need to be taxed in full on gains that relate to periods of non UK residence.
This briefing note explains how time apportionment relief works, how to calculate the reduction, and how it interacts with top slicing relief and planning for onshore and International Investment Bonds. It is intended to help you recognise when this relief could significantly reduce a client’s tax bill and what evidence is needed to claim it.
Read more about how time apportionment relief works.
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Calculating top slicing relief on a chargeable event gain
This briefing note has been designed to help you understand how top slicing relief is calculated for International and UK investment bonds where an individual is assessed for tax on the chargeable event gain (CEG).
Order of Taxation
Learn how different types of income are taxed and how they fit into a client’s income tax calculation.
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*Whole of Life Assurance Policy or Capital Redemption Bond