Tax on Investment Bond?

[Dave14]

If I cash in an Investment Bond, on which tax is paid on the interest at source, should I declare the interest as "Unearned Income" or "Capital Gains" on my tax return? Thank you for any advice.

[buildersmate]

The HMRC rules about these are not as striaghtforward as other financial services products.
I suggest you read this, then come back again if you have further questions.
http://www.thefundsup.../Investment_bonds.htm

[Dave14]

Thank you 'buildersmate', your answer clarifes nearly everything. Just one additional query - Do you know if I can declare any profit (or loss!) under 'Capital Gains' rather than 'Unearned Income'?

[buildersmate]

I think you will have to look at the way the earnings have been declared on your specific bond; some of the 'profit' will be created from growth in the bond (capital gain) and some of it will be returns.