You can unsubscribe at any time and we'll never share your details without your permission. 1  1Apple Watch 3 release date, news and rumors. 2  2The best free VPN 2017. 3  3Samsung Galaxy Note 8 release date, news and features. 4  4iPhone 7S release date, news and rumors. 5  5Amazon's Samsung Galaxy S8 deal is nearly half the Note 8 price.
The key step when deciding who pays the tax on a gain under an investment bond is to establish who the owners of the bond are when the gain arises. The tax treatment then depends on whether the bond is individually owned or held under a trust / the type of trust.
Included in Your Cost Basis. If you buy a premium bond, one option is to just include the premium in your cost basis to calculate a capital gain or loss when your sell the bond or when it matures. At maturity the premium becomes a capital loss. For example, you paid $105,000 for a bond that has a par value of $100,000. When the bond matures, you can claim the $5,000 premium paid as a capital loss on your income tax return.