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Quantum of solace

11 November 2008 / Tim Page
Issue: 4184 / Categories: Comment & Analysis , Personal Tax , Income Tax
The name's bond, AIG bond. TIM PAGE offers a little comfort for investors in distressed bonds with impending deadlines


  • A background to bonds and chargeable events.
  • The advantage of the bond 'wrapper'.
  • ITTOIA 2005 s 539 and deficiency relief.
  • The AIG fund investments in bonds.
  • The tax implications of full and partial encashment.

Bad news is all around but some poor souls also have untold tax complexity to keep them awake at night and all at a time when they are not sure who they can trust to give them sound financial advice.

In this article I will explore the difficulties faced by individuals with investment bonds that have fallen in value. I will focus on those with what might be termed 'distressed bonds': in particular those unfortunate enough to have invested in an Enhanced Fund run by American International Group (AIG).

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