At Stephenson Smart we are able to provide you with the best advice regarding your investment and pensions.
With a complicated and strictly regulated financial services market, independent financial advice requires specialist knowledge.
We make use of our wide range of professional contacts to ensure you have a suitable independent adviser to provide you with impartial advice in areas such as pension schemes, life assurance, critical illness cover, private medical insurance and care plans, and individual savings accounts and investments.
Top Slicing Relief
Top Slicing Relief may be available after the encashment of certain life insurance policies and investment bonds to reduce the amount of tax payable on the gain.
Bonds offer investors tax deferral on investment growth until a ‘chargeable event’ such as encashment occurs, potentially creating a chargeable event gain. This gain will be taxed as income in the tax year of encashment which could result in a large tax liability, which may not have occurred had a small amount of the gain been taxed in each year the bond had been held. Top Slicing Relief aims to correct this by reducing the tax liability. Eligibility will depend on income levels in the year of the chargeable event gain.
This is a very complex area of tax. If a chargeable event gain has arisen on your insurance policy or investment bond, please do not hesitate to get in touch.