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Bonds

Independent financial advice

Onshore and offshore bonds are technically single premium life assurance plans. What this means is they are investments, which are structured in such a way as to fall under insurance taxation regulations. Therefore, they can be a useful financial planning option for some clients.

Bond Benefits

Some of the benefits of using bonds are:


  • 5% of the original investment can be withdrawn from the bond without an immediate tax liability (for 20 years cumulatively)
  • There is something called “top slicing”, which can help mitigate the impact of tax charges if a gain on a bond pushes you into a higher income tax bracket
  • Funds within the bond can be easily switched with no Capital Gains Tax
  • Bonds can be assigned, which is not possible with other investments such as pensions and assets, which can help with tax planning for families

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Bonds and Taxes

The tax treatment will depend on your individual circumstances which may change, tax rules may also be subject to change in the future. Not all areas of Estate Planning or tax planning are regulated by the Financial Conduct Authority.

The tax treatment between onshore and offshore bonds differ and it is important the right product is selected based on your personal circumstances. It is also important as with any investment that the underlying investments within the bond are appropriate for your personal circumstance, needs and objectives as investments can go down as well as up.

If you’re interest in Bonds, speak with our team today.

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Bonds
Meet Mark Evans, our expert in Investment Advice.