← Calculators/Tax year 2026/27·Last reviewed
Gain, slice and the 5% allowance position from the certificate figures — plus a three-route withdrawal comparator and a segment optimiser.
Free, no sign-up. Runs the same engine and the same versioned tax-year config the signed-in suite uses — nothing leaves your browser. How we verify the numbers.
On a full surrender the chargeable event gain is the surrender value, plus all withdrawals previously taken, minus total premiums paid and minus any gains already taxed on earlier excess events. A negative result is a deficiency, not a gain — deficiency relief may apply instead.
IPTM3505 (full surrender) · ITTOIA 2005 s.491
Each policy year you may withdraw 5% of the premiums paid without an immediate chargeable event — unused allowance accumulates, and the pool caps once cumulative allowances reach 100% of premiums (the 20-year point). Withdrawals beyond the cumulative allowance trigger an excess event taxed in that year. The allowance defers tax; it does not remove it — everything washes through the final surrender computation.
IPTM3540 (part surrenders, the 5% allowance) · ITTOIA 2005 s.507
Most bonds are written as a cluster of identical mini-policies (commonly 100 or 1,000). Surrendering K whole segments crystallises K/N of the total gain as a final event on those segments — often cheaper than a part-surrender excess for the same cash, and the comparator above prices all three routes side by side.
IPTM3520 (segment surrender as separate policies)
Computed live by the same engine the tool above runs. The slice is the figure top-slicing relief works on — take it to the top-slicing relief calculator for the five-step computation.
— When you're ready
Save the calc to a client and get the branded compliance PDF — full working, legislative references, config version, sign-off trail.
3 free calcs / month · no card required · cancel any time.
For planning and illustration purposes only · Verify all inputs against source documents · This tool does not constitute financial or tax advice.
Current bond value if fully surrendered today.
Initial + any top-ups since inception.
Cumulative across all policy years. 0 if none.
Gains already taxed in prior tax years. 0 if none.
Whole policy years to date. The cumulative 5% allowance caps after 20 years.
Quicktool figures hand off to the full bond calculator with your gain, complete-years and bond type pre-filled — pick a client there to archive with audit trail + PDF.
Forward-looking modeller
Client wants to take cash out — full surrender, partial under the 5% allowance, or surrender K whole segments. Effective tax rate compared on the cash actually raised; cheapest route highlighted.
Net cash the client is asking to extract.
Salary, self-employed, pension, rental — gross.
Interest only. Excludes dividends and the bond gain.
Taxed at the dividend rates as the top slice. Excludes the bond gain.
Onshore bonds carry a deemed 20% basic-rate credit; offshore do not.
Most bonds are sold as 100 or 1,000 mini-policies. Check the schedule.
Year the chargeable event will fall in.
Full surrender
Whole bond surrendered now
IPTM 3505 · whole-bond chargeable event
Partial withdrawal
Withdraw under the 5% pool
IPTM 3540 · 5% allowance + excess event
Segment surrender
14 of 100 segments
IPTM 3520 · K segments as full events
Surrendering whole segments crystallises a proportional gain (total gain × K ÷ N). This sweeps 1…N and shows the net additional tax at each count, using the income above — so you can size the withdrawal to the client's unused allowances.
The segment optimiser tabulates up to 50 segments. This bond has more — use the withdrawal planner above, or reduce the segment count to model a representative slice.
