Income & Return of Capital

Income & Return of Capital

The investment allows for a 5% withdrawal of the original capital per year without any immediate liability to taxation as this is considered a return of capital.  However, should a greater sum than 5% be withdrawn this could incur a chargeable event.

If the policyholder is a higher rate taxpayer or the income taken pushes those into the higher rate tax bracket additional taxation may be incurred.  When the Investment Bond is encash any investment growth achieve may be subject to income tax.

Withdrawals made can pay an income on a monthly, quarterly, half yearly or annually basis.

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A&J Wealth Management Ltd


Bigfrith Lane

Cookham Dean



01628 480200

© 2024 A&J WEALTH MANAGEMENT LTD A&J Wealth Management Ltd is authorised and regulated by the Financial Conduct Authority. Financial Services Register, no 428590, at Registered in England, Company no: 5105933. Registered Head Office: Sawfords, Bigfrith Lane, Cookham Dean, Maidenhead, Berkshire SL6 9PH

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