Farley And Partners

Investment bonds

Those with a lump sum to invest might consider an investment bond. This is a life insurance product and the norm is to draw an annual tax free sum equal to 5% of the original investment for the life of the bond. On maturity, usually after 20 years, any surplus is taxable, but with a credit for basic rate tax. Higher rate tax might be payable, but ‘top slicing’ relief might apply.

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