Onshore investment bonds are more relevant than ever before, providing more flexible, financial planning-friendly solutions for clients across their life stages.
Onshore bonds increasingly are being used due to the tax efficiency of this life wrapper and its ability to remain relevant as their clients financial planning needs evolve and they move through their investment life stages, covering their investment, income and inheritance needs.
There are three elements driving the rising popularity on onshore investment bonds.
Contributing to a SIPP and ISA, there is now a strong argument for investors to consider onshore investment bonds for any excess investment, as due to the tax efficiencies, they make for a more attractive option over investing into a general investment account (GIA)
Example
“Clients with the larger available investment amounts will be using up their pensions and ISA contributions, and wanting a tax effective home for additional investments.” “This can make bonds attractive to those clients, as they can withdraw 5% a year for the first 20 years, with the ability to carry forward the 5% if not used in one year, and in addition there is top slicing.”
I am an Independent Financial and Mortgage Adviser and have worked in Financial Services for over 12 years. During my career I gained experience in assisting both individual and corporate clients.…
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