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Are bonds the answer in the current tax landscape?
Last Updated: 16 May 24 90 min watch
We are now in 2024/25 and faced with the full reduction in the capital gains tax allowance and dividend allowance. With another two years of frozen rates, bands and allowances and a reduced additional rate threshold we also have ever increasing tax bills, more taxpayers and more people paying tax at higher rates.
Interest, dividend and gains are a fundamental part of investment returns. The individual tax landscape tells us returns should fall.
Les Cameron (Head of Technical, M&G Wealth)
Graeme Robb (Senior Technical Manager, M&G Wealth)
Consider whether insurance bonds are the answer to achieving higher returns for individuals.
90 minutes | Structured CPD accredited by CII
Learning outcomes
By the end of this session, you will be able to:
- Describe the current tax landscape and its impact on individuals.
- Explain the taxation treatment of insurance bonds
- Identify individuals who may benefit by using an insurance bond wrapper.
Claiming your CPD
To claim your CPD certificate, test your knowledge with the questions below.
Write down your answers to each of the following questions and check your answers when you click to claim your CPD certificate on the link below
1. A Capital Redemption bond usually…
a) Allows for up to 10 lives assured
b) Is only available onshore
c) Has a maturity date of 5 years and no lives assured
d) Has a maturity date of 99 years and no lives assured
2. A part surrender gain across the segments arises…
a) On the day the part surrender is made
b) At the start of the tax year
c) At the end of the tax year
d) At the end of the insurance year
3. Which of these is not a chargeable event?
a) Assignment for money or money’s worth
b) A fund switch within the bond
c) Death of a life assured giving rise to benefits
d) Maturity
4. Jasper is a single owner & sole life assured of a bond. He dies and the bond pays out.
a) The gain is taxable on him in the tax year of his death
b) The personal representatives are taxable on the gain
c) His surviving spouse is taxable
d) There is no one to tax and the gain is tax free.
To claim your CPD certificate, test your knowledge with the questions below.
Write down your answers to each of the following questions and check your answers when you click to claim your CPD certificate on the link below
1. A Capital Redemption bond usually…
a) Allows for up to 10 lives assured
b) Is only available onshore
c) Has a maturity date of 5 years and no lives assured
d) Has a maturity date of 99 years and no lives assured
2. A part surrender gain across the segments arises…
a) On the day the part surrender is made
b) At the start of the tax year
c) At the end of the tax year
d) At the end of the insurance year
3. Which of these is not a chargeable event?
a) Assignment for money or money’s worth
b) A fund switch within the bond
c) Death of a life assured giving rise to benefits
d) Maturity
4. Jasper is a single owner & sole life assured of a bond. He dies and the bond pays out.
a) The gain is taxable on him in the tax year of his death
b) The personal representatives are taxable on the gain
c) His surviving spouse is taxable
d) There is no one to tax and the gain is tax free.
Before collecting your certificate, please take a moment to provide us feedback on this session, please email prudential.distribution.team@prudential.co.uk
Complete the form below and we’ll email your CPD confirmation to you. Please use the email address that you would usually use when contacting us.
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