Tax payable on UK investment bond

[Sandbank65]

My daughter is the beneficiary of a trust set up by her great aunt in the UK. I understand it is an investment bond that has appreciated by a good amount over the years. Can anyone help me understand what is the likely tax that my daughter who has just turned 18 would be liable for? I am presuming it’s CGT? And will CGT be payable on the total fund or the gain on the original investment. Many thanks!

 

[jpd]

This sounds like it needs specialist knowledge of inheritance taxes, trusts and UK laws

 

[Fortune]

My daughter is the beneficiary of a trust set up by her great aunt in the UK. I understand it is an investment bond that has appreciated by a good amount over the years. Can anyone help me understand what is the likely tax that my daughter who has just turned 18 would be liable for? I am presuming it’s CGT? And will CGT be payable on the total fund or the gain on the original investment. Many thanks!

If your daughter is Irish resident, the investment bond is liable to Irish life assurance exit tax

 

[Sarenco]

I would suspect your daughter would be subject to CAT on the amount initially settled in trust for her benefit, subject to the usual thresholds, etc.

I can’t see how CGT or exit tax would be applicable.

Mind you, I would be seeking specialist advice on this one.

 

[AndroidMan]

About 18 years ago, there was an incentive in the UK where the government gave £250 to newborn children in a Child Trust Fund.
There was an annual allowance of around £1200 that could be contributed to it.
It was a way of encouraging parents to save for their kids and maybe consider sending the child allowance to it.
I believe the whole incentive was tax free, although it did get cancelled in around 2012 or so.
Not sure if there is CGT due if that is the case ?