Tax due on a single premium investment policy with Aviva

[illdoit2morrow]

I have a single premium investment policy with Aviva in which i put a lump sum of €12000 back in 2021. Allocation is 101%.
Its mostly invested in equities which haven't done too well but that is not what my query is about.

I got an annual statement and didn't understand how the net policy value was calculated, Aviva came back to me directly with the following explanation.

Rem	Description	Formula	Amount
A	Gross Policy Value		12096.33
B	Premium To Date		12000.00
C	Premium to Use (With Levy)	B/1.01	11881.18
D	Past GRU Tax		0
E	Taxable Gains	A-C+D	215.14
F	Tax Rate		41%
G	Tax	(E*F)-D	88.21
Net Policy Value		A-G	12008.12

The Premium to Use (With Levy) amount is not displayed on the Aviva service centre
I understand the government levy is 1% and taken at source but feel its a tad unfair that i am paying the levy and then paying tax on any gains on the Premium to Use (with Levy) amount.
I was expecting the Taxable gains to be A-B+D instead of A-C+D. I've already paid the levy so its not a taxable gain my my eyes.
Am i completely missing the point as to what a 'gain' is and how tax is applied on a gain? I thought my gain was €96 not €215.

 

[jpd]

Your investment in the fund was after the deduction of the levy ie € 11,881 so the gain is € 12,096 - € 11,881 = € 215

The levy is not a tax, it's a levy to recover the cost of the Quinn Insurance fiasco

I am surprised that the fund is only worth 12,096 but I suppose that will depend on when in 2021 you actually purchased it

 

[ClubMan]

but I suppose that will depend on when in 2021 you actually purchased it

And what it is invested in.

 

[jpd]

"mostly in equities" according to the OP

 

[ClubMan]

"mostly in equities" according to the OP

Its mostly invested in equities which haven't done too well

 

[illdoit2morrow]

Your investment in the fund was after the deduction of the levy ie € 11,881 so the gain is € 12,096 - € 11,881 = € 215

The levy is not a tax, it's a levy to recover the cost of the Quinn Insurance fiasco

I am surprised that the fund is only worth 12,096 but I suppose that will depend on when in 2021 you actually purchased it

The fund is called L&G Multi-Index V Fund and the policy commenced in May 2021. Its been up and down since then.

 

[jpd]

The fund is a medium to low risk - I wouldn't expect that it is heavily invested in equities at all
The lgim site does not give a breakdown of the fund holding - a big no-no in my view

It is actively managed and does not seek to match a benchmark.

 

[AAAContributor]

Asset mix, top ten holdings, regional allocation, sector breakdown here:

Aviva Fund Centre

Fund Centre for latest performance, prices and factsheets from Aviva

aviva-fundcentre.longboatanalytics.com

 

[jpd]

OK