A look at everything advisers need to know about top slicing relief

My challenge in this article is to explain top slicing relief (TSR) for investment bonds and the recent changes, which are potentially favourable to clients, simply and concisely. So, here goes… Why do we have TSR? The chargeable event regime taxes bond gains on a realisation rather than accruals basis. This appeals to those whose gain is deferred to a time when they have less taxable income, e.g. in retirement. That's fine but others could be disadvantaged when growth accruing over a number of years is all taxable in a single tax year. TSR is designed to mitigate the impact of this...