Bonds Chargeable Event Gain Calculator

Find out what your client's chargeable event gain could be

Our chargeable event gains calculator helps you to provide an indicative gain to your clients for an Aviva Onshore Bond (only for accounts starting AV) based on the different ways of taking money out (partial surrender across all segments and full surrender of individual segments). The calculator will only take into consideration the current position of the bond and will not account for pending transactions or gains that are yet to occur from previous transactions. The values are subject to change and cannot be guaranteed.

For more detail on chargeable event gains, you can read our guide on Onshore Bonds (PDF 84.9KB).

What information do I need to complete the calculator and where can I find it?

To fill in the calculator you will need the following information from your client's policy, which can be found within your client's sub account. If you navigate to the details of the bond account, from there you will be able to find the required information in the ‘client details’ section under the 'Onshore Bond Details' tab:

  • Current surrender value
  • Number of segments remaining
  • Current chargeable gain
  • Remaining tax deferred allowance

You can then enter all of the information needed into the tool, alongside the ‘Withdrawal amount’ you want to include. 

You must read, acknowledge and tick the confirmation box to confirm you understand the context of the tool before being allowed to select the 'Calculate' button to receive the results.

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Chargeable event gain calculator

This calculator has been designed to be used with Aviva Onshore Bond accounts starting AV and does not cover all tax implications. The calculations from this tool may not calculate the lowest chargeable event gain position for the withdrawal value required (whether through a combination of full segment surrender and part withdrawal events, or otherwise). The results are for information purposes only.

Guarantees and ongoing transactions
The calculations are based on the information you input only and will not take into consideration other active elements of your client's policy. If your client has active guarantees, the method of withdrawal may affect the guarantee negatively, while producing lower chargeable event gains.

This tool is quick and easy to use and will take approximately 2 minutes to complete. Once you input your information and hit calculate, your results will show on the next screen.

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Enter the surrender value of the bond.

This is the same as the current value of the bond policy and can be found on the main pages of your client's account.

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Enter the remaining tax deferred allowance on the bond.

This information can be found in the ‘client details’ section of your client's account under the 'Onshore Bond Details' tab.

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Enter the number of segments remaining on the bond.

This information can be found in the ‘client details’ section of your client's account under the 'Onshore Bond Details' tab.

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Enter the chargeable gain currently on the policy.

This information can be found in the ‘client details’ section of your client's account under the 'Onshore Bond Details' tab.

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Enter the amount your client wants to take from their bond.

The tool estimates the bond chargeable event gain based on the information input. The results of this tool are for information purposes only and should not be relied upon as advice.

The results are based on current understanding of HMRC legislation and practice guidelines, but these might change without notice, and the tool does not consider all the possible circumstances that could have an impact on your client or their personal tax affairs.

The results provided by the calculator cannot be relied upon in all cases. The tool has exclusions for certain scenarios such as the assignment of segments, or transactions taken in the same tax year.

Please also note that the values shown do not take in to account any pending transactions, accrued charges that may be applied or any guarantees your client may have. These results are not saved and will be lost when you exit the page.

Specified amount method

Chargeable event gain:

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A specified amount withdrawal is achieved by taking an equal amount from all segments in the bond. The final payment amount cannot be guaranteed as fund values will increase or decrease in line with market price movements.

Specified amount withdrawals more than the available 5% annual allowance of premiums paid give rise to an excess chargeable event gain. The calculation of any gain is made at the end of the ‘policy year’ in which the specified amount withdrawal is taken, this may be in the following tax year. The excess gain may be replaced or voided if a full segment withdrawal occurs later in the same tax year. Excess gains are included in the final gain calculation, as previous gains. 

Top slicing years are measured as the number of full policy years completed since the inception of the policy or the previous chargeable event gain. Top slicing relief may be available if the gain, when added to other income, pushes your client into a higher tax band.

Withdrawal amount

Segments closed

Segment value

Specified amount value

End of policy year gain

Immediate gain

Remaining tax deferred allowance

Segment & specified amount method

Chargeable event gain:

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A 'combination withdrawal' event combines both segment withdrawal & specified amount withdrawal methods, in order to achieve the withdrawal value requested.

The maximum number of segments will be fully encashed first, to achieve the highest amount without exceeding the required withdrawal value. This will reduce the number of segments remaining within the policy. The specified amount withdrawal will then take an equal value across the balance of the remaining policy segments to achieve the remaining amount. 

This combination may not provide the lowest chargeable event gain. Other combinations could be used to provide a lower chargeable event gain.

A 'combination withdrawal' event combines both segment withdrawal & specified amount withdrawal methods, in order to achieve the withdrawal value requested.

As one segment is valued at more than the requested withdrawal amount, there are no segments to close. This means the withdrawal would be the same as a specified amount withdrawal.

Withdrawal amount

Segments closed

Segment value

Specified amount value

End of policy year gain

Immediate gain

Remaining tax deferred allowance

Segment method

Chargeable event gain:

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A request for one or more segments  will close sufficient segments to achieve your requested withdrawal value without exceeding it. The final payment amount cannot be guaranteed as segment values will increase or decrease in line with market price movements.

Should an overall gain be realised on the segments withdrawn, then the gain is taxable as income in the tax year of surrender.

Top slicing years are measured as the number of full policy years completed since the inception of the policy. Top slicing relief may be available if the gain, when added to other income, pushes your client into a higher tax band.

Segment method withdrawals will close sufficient segments to achieve the requested withdrawal amount. 

As one segment is valued at more than your requested withdrawal amount, this method cannot be used.

Withdrawal amount

Segments closed

Segment value

Specified amount value

End of policy year gain

Immediate gain

Remaining tax deferred allowance

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