Malcolm Finney takes a look at the complex provisions governing single premium bonds.
A single premium bond is a lump sum non-qualifying insurance policy. As a non-qualifying policy, no income tax relief is available with respect to the premium payment, and any chargeable gains arising (e.g. on surrender, maturity) are subject to an income tax (not capital gains tax) charge, despite the policy being a capital asset (although not a chargeable asset; TCGA 1992 s 210(2), but note s 210(3)). Specific legislation (ITTOIA 2005, Pt 4, Ch 9) provides for income tax treatment.
Chargeable events
The
