Investment bonds have the following features:
Can be particularly useful to those who are currently higher rate taxpayers but are likely to be basic rate taxpayers in the future, for example, after retirement.
Investment bonds are deemed by HM Revenue and Customs to be “non-income” producing investments and as such, provided that withdrawals are retained below the 5% per annum limit, they can make extremely useful investments for trusts and trustees.
Investment bonds can also be an important tool when carrying out inheritance tax planning. For example, they can be gifted into a suitable trust arrangement and, as a “potentially exempt transfer”, provided you survive for seven years from the date of the gift, will fall outside of your estate for inheritance tax purposes. There are, of course, other options available to investors undertaking this area of planning.
One issue that should be borne in mind when investing in investment bonds, however, is that the withdrawals received could affect your entitlement to the “age related allowance” for income tax purposes if you are age 65 and over.
Complete our enquiry form and recieve our investment fund pack which includes key feature documents and application forms by post.
Get assistance - call us on 0845 308 2525
If you would like us to go through the application process with you, or if you have any questions, just call our Customer Helpdesk.
(9am to 5.30pm Monday to Friday)
Alternatively if you require advice speak to an advisor today about your investment options - Investment Advice Service »