Investment Bonds Flashcards
1
Q
What is an investment bond?
A
A lump sum investment into an assurance product
despite being an assurance product the coverage is low (usually 101%)
2
Q
What tax is charged on an investment bond?
A
Income tax not CGT
3
Q
What tax status do investment bonds have?
Under what conditions
A
Tax deferred
so long as withdrawals do not exceed 5%
Tax payable on a chargeable event
4
Q
What internal tax is charged on an onshore bond?
A
20% internal tax (cannot be reclaimed by non tax payers)
5
Q
What are the 5 chargeable events?
DAMES
A
Death
Assignment for money
Maturity
Exceed 5% partial surrender
Surrender
