NRB Will Trust Life Assurance Bond Top slicing relief

[Andrew01]

Hello Forum

If the Trustees of a NRB Will Trust decided in invest the trust assets in a Life Assurance Bond.
All the parties involved are UK resident.
The Trustees may decided to invest in a Life Assurance Bonds as they are deemed to be none income producing assets by HRMC so would simply the trust income and cgt affairs.

The trustees in the future could then assign segments of the bond to beneficiares when they see fit.
The beneficiary could then cash in the segment of the bond when they desired.

I assume (the trusttees taking out the bond ) would not prevent top slicing relief being avalible as "normal" depending on the beneficaries own income tax rate?

Regards
Andrew

[maths]

PRs and trustees are not entitled to top slicing relief (TSR).

However, an appointment out to a beneficiary of a policy followed by encashment by the latter would permit TSR to apply.

[Andrew01]

Hello Maths
Thank you for confirming when TSR would be permitted (Surrender by beneficiaries) and would not be avaliable (Surrender by Trustees).