Tristan Noyes looks at investment bonds, an often-overlooked investment wrapper.
Investment bonds are a tax-efficient way to hold investments, similar to other ‘wrappers’ (individual savings accounts, pensions, etc). With increasing capital gains tax (CGT) rates, they are worth considering – particularly for higher earners planning for retirement.
Investment bonds are established with an insurance company and funded with a lump sum or regular cash contributions. The contributions are usually invested into funds (unit trusts, exchange-traded funds, etc.), which can be accessed at any time through full or partial surrenders.
