Chargeable Gain Income Tax

The Chargeable Income Tax calculator will give an indication of the income tax liability on all the chargeable gains for every Partial Surrender and Full Surrender withdrawal that are to be assessed in that tax year. 

The amount of tax payable will also depend on the client’s current total income, whether the investment bond is onshore or offshore, and how long it has been in place.


Where multiple chargeable events gains occur in the same tax year, the total top-sliced gain needs to be apportioned across all of those investment bonds.


Pension Contributions

The individual’s pension contribution can be input which will have the impact of increasing the individual’s Basic Rate Tax band and reducing their “adjusted net income”. By including the pension contribution can show how the potential investment bond tax liability can be reduced.


Large Withdrawals

If the individual’s income and chargeable gain exceed £100,000 then a warning will be shown to highlight that their Personal Allowance will reduce/be lost.


This will be shown even if the clients’ income is already above the limit in which they lose their PA because it can act as a reminder and possibly instigate the payment of a pension contribution to bring their ‘adjusted net income’ below the £100k limit.