Investors Bond Tax Reprieve

April 22nd, 2015

Investors who have overpaid tax on withdrawals from investment bonds provided by life insurance companies could be in line for refunds, says the Financial Times.

The bonds allow for two ways of making withdrawals, one of which can result in a much larger tax assessment than the other. An upper tax tribunal upheld the case of a taxpayer who had withdrawn money the wrong way and paid too much tax – it held that his tax liability should have been assessed on the lower basis. The case involved partial withdrawals from a bond that exceeded the 5% annual allowance.