Investment Bonds

Depending on your circumstances and what you want to get out of your investment, investment bonds can be a tax efficient option for people who want to invest a lump sum and not access it for at least five years.  They are a type of life insurance policy and come in a wide range of varieties with different options.  If investment bonds are a good option for you, we would talk you through all your options to help you choose which would be the most appropriate for your situation.

For higher rate tax payers, these types of investments can minimise your income tax bill and some bonds come with guarantees that you won’t end up with less money than you put in should the value of the investment go down.  These types of investment bonds often come with higher charges so we can discuss with you if you would like to take the risk of the value of the investment dropping or not.  These bonds do allow you to withdraw money each year up to a certain limit and you can withdraw up to 5% each year without incurring any immediate tax liability.  This tax is merely deferred though as these withdrawals are added to the overall profit of the bond when the bond is cashed in and the tax becomes payable.

Because investment bonds are a type of life insurance policy, they can pay out more than the value of the fund if you die before the end of the term of the bond.  There is a choice of funds we can choose to invest the money in and, like all investments, there is a risk that the value of the fund could go down as well as up.

If you are interested in this type of investment, we will gladly talk you through all your options and, by taking your circumstances, preferences and aspirations into account, advise you on whether this is a good investment for you and what sort of options you should choose.

Risk Warning: The value of units can fall as well as rise, and you may not get back all of your original investment & Tax planning advice is not regulated by the Financial Conduct Authority