In this video, Technical Connection's Niki Patel discusses the 5 per cent tax deferred withdrawal allowance on bonds, and how this works where additional premiums have been paid. 

    She provides an example of how the 5 per cent allowance is applied on both the original investment amount and how this changes with an additional premium factored in. 

    Using an example of an original investment amount of £100,000 in year one and a further investment of £50,000 in year four, Niki explains how the withdrawal allowance amount changes over the 20-year period it is available. 

    She also looks at how to calculate the chargeable event gain on full surrender of the policy. 

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