Top Slicing Relief

Published / Last Updated on 28/10/2013

Investments in insurance company investment bonds are known as whole of life non-qualifying investment plans.Some life insurance qualifying rules mean that they could be taxed.Qualifying rules mean they are not taxed.Non-qualifying rules mean they are taxed.When you add the slice of your investment to your year’s income and it remains below the higher rate tax threshold then there is no more tax liability to pay.If you are above the higher rate tax threshold then you are subject to tax on the growth.If when adding your slice onto your income it takes you only just over the threshold then only the amount above the threshold is subject to tax.

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