Brand Bitesize: Top Slicing
To help you prepare for your CII R03 exam, this Brand Bitesize video explains Top Slicing – also a quick revision tool for AF1.
This video is correct as at 12 August 2025.
Top Slicing
In this Brand Bitesize video, we walk you through HMRC’s step-by-step method for working out the Income Tax position on gains from both onshore and offshore investment bonds, including how top slicing relief is applied.
You’ll learn:
- How to calculate total taxable income and determine which parts of a gain fall into each tax band.
- How to work out the overall tax due and account for the basic rate tax treated as paid.
- What the “top slice” or “annual equivalent” is, and how to calculate it.
- How to work out the relieved liability using top slicing.
- How to find the final top slicing relief and apply it to reduce your tax bill.
We’ll also cover a worked example so you can see exactly how the calculations are done in practice.
Perfect for those studying towards CII exams R03, R06 and AF1, or anyone looking to understand the tax treatment of investment bonds in the UK.
Grab the resources you need!
If you’re studying for your CII R03 exam and aiming for a comfortable pass, you need to get all the practice you can. Grab our free taster to try out one of Brand Financial Training’s resources for yourself. Click the link to download the R03 calculation workbook taster now!
Alternatively, you can try the taster for AF1 if you’re studying for that exam.
