Roy Sherratt

Hello, My wife invested £30k in a Guaranteed Investment Bond with Aviva commencing 4/10/2010. On the 5th anniversary of the Bond she chose to continue to invest in the latest version of the Guaranteed 100 Fund. On the 10th anniversary she moved half of her investment into the Guaranteed 90 Fund leaving the rest in the 100 Fund. The Bond's value is now circa £40k. No withdrawals have been made to date. She's part-time self employed and earns below the tax threshold of £12570. Can you please clarify the below: Q1. As the Bond is now in its 14th year can £21k be withdrawn, under the 5% deferred tax allowance rule, without triggering a chargeable event ? Q2. Does the gain portion of any further withdrawals need to be included in her self assessment tax return? Q3. If 'Yes' to Q2 will the gain only be taxed if total income in that tax year is above £12570 ? Regards and thank you.