SJP Example

This item is intended for guidance purposes only
Technical Financial Planning Ltd can accept no responsibility for any loss which may occur as a result of reliance on this information. 
    It is based on our understanding of current legislation and HMRC practice. It does not constitute legal or taxation advice.
  The objective of this calculator is to provide an indication of the amount of income tax that would be payable on full segment surrender or Partial Surrender (if not a full encashment) of an Investment Bond.   
Name of client
Name of spouse
Date of Birth
Spouse date of birth
Taxpayer in?
Non-Savings Income
Non-Savings Income
Plus Buy To Let income?
Plus BTL income?
Rental Income
Rental Income
Mortgage Interest
Mortgage Interest
Interest
Interest
Gross Dividend income
Dividends
Total income (note 4)
Total income
Gross Pension contribution
Pension cont.
Gift Aid (Gross)
Gift Aid
Onshore or Offshore?
Withdrawals
Total
Single or Joint owner?
Year starting Withdrawal 5% Amount Cumulative Available Chargeable gain
Investment Date (2)
Investment Amount
Number of segments
Additional investment
No. of Add. investments
Total Add. Investments
Date of surrender
Fund Value
Amount to be Surrendered (3)
Previous Withdrawals
Tax on Client or Spouse?
FULL SURRENDER
Segments surrendered
Chargeable Gain per owner
Top sliced gain
PART SURRENDER
Chargeable Gain per owner
Top sliced gain (4)
Notes & Assumptions
1. This is based on our understanding of HMRCs practice as outlined in Insurance Policyholders Taxation Manual (IPTM3840)
 and changes announced in the 2020 Budget - see Summary for calculations
2. If Investment Bond in force more than 33 years and taking withdrawals, refer to TFP Calculators.
3. Care to be taken if client surrendering more than one Investment Bond in the same tax year - see Multiple Bond calculator.
4. This will include any additional tax as a result of the reduction, if any, in Personal Allowance or Personal Savings Allowance.
5.
This item is intended for guidance purposes only
Technical Financial Planning Ltd can accept no responsibility for any loss which may occur as a result of reliance on this information. 
    It is based on our understanding of current legislation and HMRC practice. It does not constitute legal or taxation advice.
  The objective of this calculator is to provide an indication of the amount of income tax that would be payable on full segment surrender or Partial Surrender (if not a full encashment) of an Investment Bond.   
Name of spouse
Spouse date of birth
Gross Pension cont.
Pension cont.
Additional Investment Details
1 Investment Date
Investment Amount
2 Investment Date
Investment Amount
3 Investment Date
Investment Amount
4 Investment Date
Investment Amount
5 Investment Date
Investment Amount
This item is intended for guidance purposes only
Technical Financial Planning Ltd can accept no responsibility for any loss which may occur as a result of reliance on this information. 
    It is based on our understanding of current legislation and HMRC practice. It does not constitute legal or taxation advice.
  The objective of this calculator is to provide an indication of the amount of income tax that would be payable on full segment surrender or Partial Surrender (if not a full encashment) of an Investment Bond.   
Name
Gross Pension cont.
Gift Aid
Date of Surrender
FULL SURRENDER
PART SURRENDER
Bond Chargeable Gain
Bond Top-Sliced Gain
Top Slicing Relief as outlined in IPTM 3840
Step 1
Calculate total taxable income for the year
Total Tax liability
Step 2
Calculate total tax due on gains across all tax bands
Deduct basic rate tax treated as paid
Step 3 
Calculate Annual Equivalent of gain
Step 4
Calculate individuals tax liability on Annual Equivalent
Deduct basic rate tax treated as paid
x N
Step 5
Deduct Step 4 from Step 2 to give top slicing due
Deduct Notional Tax
Deduct Top Slicing Relief
Actual Tax due for the Year
Difference results in tax to pay on Bond
(includes any additional tax as result of reduced 
Personal Allowance)
1. Check for loss of personal allowance
Adjusted Net Income
Personal Allowance
Personal Savings Allowance
Calculate the total taxable income
Source Amount Tax due
Non Savings
Savings Income
Intl Bond CG
Dividends
UK Bond CG
Total
2. Total tax on Bond gain
3. Top Slice
4. Calculate Top Slice Relief
(1) Tax on Whole gain
Source Amount Tax due
Non Savings
Savings Income
Dividends
Intl Bond CG
UK Bond CG
Tax on whole gain less notional basic rate tax
Tax on gains
Less 20% credit
Net tax
(2) Tax on Top Slice Gain
Adjusted Net Income
Personal Allowance
Personal Savings Allowance
Source Amount Tax due
Non Savings
Savings Income
Dividends
Intl Bond CG
UK Bond CG
Tax on top-slice gain less notional basic rate tax
Tax on gains
Less 20% credit
Net tax
Multiply by years
5.  Top Slice Relief and net tax on gain
(1) minus (2)
Net tax on gain
Tax on Bond
Less notional tax
Less TSR
Tax on gain
6. Total tax on income and gain
Tax on non savings
Tax on savings
Tax on dividends
Tax on gains
Total income tax to pay
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