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Life assurance bond declaration after 8 years.


JohnRoss

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Every year Siddalls send us a letter telling us how much to declare and where to declare it for the sale of units on our CMI bond. In the past they have said declare in box TR on both forms, 2042 and 2047, but this year they have said use box CH as the life assurance has been held for more than 8 years. Does anyone know the significance of this?.....................JR
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[quote user="JohnRoss"]Every year Siddalls send us a letter telling us how much to declare and where to declare it for the sale of units on our CMI bond. In the past they have said declare in box TR on both forms, 2042 and 2047, but this year they have said use box CH as the life assurance has been held for more than 8 years. Does anyone know the significance of this?.....................JR[/quote]

Hi,

      After 8 years there is a tax-free allowance against the gain element of withdrawals (4 600€ -single, 9200€ married).  As only the gain within a withdrawal is taxable this should mean that all your withdrawal is tax-free (unless you make a huge withdrawal or have been lucky enough to make massive gains within the plan).

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Looking at the 2042 form it says for 2CH "Produits des contrats d'assurance-vie et capitalisation d'une durée d'au moins 6 ou 8 ans". Siddalls have said declare in CH. Can this be right? Am I interpreting this incorrectly?....................JR

Sorry silly me it means at least and not as I first thought less than...............doh!

 

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[quote user="JohnRoss"]Good news then and thanks. I take it that you mean the 4600/9200 refers to the gain element and not the amount of withdrawal itself?..........JR[/quote]

Hi,

      That is correct. The 6 yr mentioned only applies if you opted for the "prélèvement liberatoire", which I'm sure Siddalls would not have recommended.

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