Introducing Investment Bonds

Steve Weisner - Independent Financial Adviser Radcliffe & Newlands

Investment bonds are investment products offered by life companies, usually available for lump sum investments. Within the bond, investors can choose how that money is invested from a range of funds. Traditionally, the most popular have been with-profits, managed and distribution funds, each of which combine a variety of asset classes. Today, however, the range is much greater, as life companies offer links to various fund management houses alongside their own existing range.

When you take out an onshore investment bond, your income and gains within the fund are subject to tax which is then deemed equivalent to you paying basic rate income tax. Therefore, if you are a basic rate taxpayer, you will have no further liability to tax on that investment. If you are a higher rate taxpayer, you will have a further liability of 20% on the total growth, however, there are ways to mitigate this.

For example, during the lifetime of the bond, you can withdraw up to 5% of the initial value of the investment every year for up to 20 years - ie: to a maximum 100% of the initial investment - without immediately becoming liable for additional tax. When the investment bond is finally cashed in, you will be assessed for tax, however, if you postpone this encashment until you are a basic rate taxpayer - perhaps after retirement or in a gap year when you are earning less - you could end up with no further liability.

For more information on Investment Bonds and other types of investments, contact Steve at Radcliffe and Newlands and he'll be happy sit down and discuss all investment needs. 

Steve Weisner
Independent Financial Adviser
Radcliffe & Newlands
5th Floor Crystal Gate
28-30 Worship Street
London
EC2A 2AH  

Tel: 020 7382 0437
Fax: 0207 374 0462
Email: SWeisner@myeggnest.com
www.rad-new.com

If you have a question or if you would like to discuss becoming a client with Radcliffe & Newlands then do please complete the very short form on the right hand column of this page.

You will usually get an answer within 24 hours except during the weekend or bank holidays.

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Introducing Investment Bonds

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