Scot Eq promotes tax discount

bonds

Scottish Equitable is urging intermediaries with clients who are higher rate taxpayers to take accou...

Scottish Equitable is urging intermediaries with clients who are higher rate taxpayers to take account of the current tax discount window on UK insurance bonds. As a result of policyholder taxation legislation announced in the 2003 Budget, higher rate taxpayers cashing in UK insurance bonds, including with-profits bonds, will face a hike in income tax on chargeable gains from April 2004, from 18% to 20%. Margaret Jago, technical manager at Scottish Equitable, said: "If the client is about to enter a market value reduction (MVR) free period, the timing of when the bond is cashed in depend...