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Where Taxpayers and Advisers Meet

Investment Bond - segment encashments / increments

Joined:Wed Mar 11, 2009 5:04 pm
Investment Bond - segment encashments / increments

Postby sentinell » Fri May 07, 2021 12:13 pm


I wonder if someone could jog my memory.

I know that if an investment bond is incremented by way of additional segments, then those segments have a different number of relevant years if the whole bond is surrendered.

However, in an extreme hypothetical situation, lets say an investment bond is set up on 05/01/2010 and incremented by way of additional segments a few years later on 5 May. Now, assume money is raised by way of segment surrender where 2 of the original segments are encashed, and 2 of the incremented segments are encashed.

Am I correct in assuming that the incremented segments will have their own year end (4 May), as they are technically individual sub-policies, so potentially could fall into a different tax year for income tax purposes ?

Just need to clarify this in my own mind.


Joined:Tue Feb 27, 2018 8:34 pm

Re: Investment Bond - segment encashments / increments

Postby ben_power » Mon May 17, 2021 10:05 am

They'll fall into the same tax year from an income tax perspective but you are right that they will have their own individual anniversary. Partial years do not count, round down to the nearest whole year.

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