hi everyone, i wonder if somone could offer some advice re IS and Bonds.

Client has an Investment Bond which is described as a "single payment ,unit linked, whole life assurance plan. Its aim is to provide you with growth over the medium to long term and life cover if you die. You can take money out,surrender it in full or set up regular cash withdrawals at any time."

The DWP are treating this as capital for IS purposes. Para 15 Sch10 of the IS regs says that the surrender value of any policy of life insurance should be ignored. The policy above seems to have some of the attributes of an insurance policy and some of the attributes of a normal bank account so I am not entirely sure whether it can be counted as capital or not - any thoughts or opinions gratefully recieved1

Have a look at R(IS) 7/98, covering a similar Investment Bond. The commissioner decided it should be disregarded.

Thanks for that, the bond we have here seems to be strikingly similar to the one in the case you referred to.