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Investment Bonds

Whether a private individual or a business owner, if you have excess capital you wish to invest in an investment bond is an attractive tax-efficient wrapper you can use to wealth.

Bonds carry many benefits, in particular an offshore bond where no tax is payable until you cash it in. You may be a high rate tax payer now, but don’t expect to be in retirement, an investment bond is a good way of deferring the tax until you are in a lower band. You might have one or two bonds in your current portfolio, but might not know if they are providing the best value for your money. We’ll give you an expert appraisal and offer positive ideas for where best to place your cash.

Investment Bonds

  • How secure are investment bonds?

    Investment bonds are tax wrappers (financial products where tax breaks are ‘wrapped’ around the investment, so we can help you control the tax position), and have many advantages to many people. They are often described as a single lump-sum premium life insurance policy, where your money is invested for potential growth.

    However, it’s what you choose to invest in that can cause the investment bonds to go up in price, and we would assess this so that your investments are in line with your personal risk profile. 

  • What is the difference between an investment bond and a savings account?

    An investment bond is a tax-efficient method of storing your funds in a long-term investment account, which will steadily grow or diminish in value according to how the investments it is linked to perform. There is no capital gains tax paid on the gains you make on an investment bond. Investment bonds are subject to income tax and you should always seek advice from us on how to manage this.

    A savings account is usually held with a bank, who will offer you a rate of interest that will vary according to the terms of the account – ease of access, duration of deposit, etc. Tax is due on interest earned in a savings account. The monetary value of a savings account will never go down, although the cash’s purchasing power will decline over time where the interest rate paid on the account is less than the prevailing inflation rate.

  • If I have a lot of bonds, is there a cumulative limit I can invest?

    There is no limit to either the number of investment bonds you can have, nor the amount you can invest within them. You are able to have bonds worth millions of pounds across a spread of products.

    We will be able to guide you as to what spread of investments will be best suited to your goals and ensure that your money is available to you as and when you need it.

  • What percentage returns should I expect on average?

    It would be foolish of us to try to give you any guarantee or even an estimate of the return you might see on any investment bonds, as we cannot predict either the machinations of the markets or the variations in external forces (for example, the price of oil or fluctuations in the value of the pound). However, what we do give you is our professional opinion and in-depth advice on which kinds of investment bonds and investment funds could work best for you, and you should talk to talk to us about what you have to invest and what kind of results you are looking for. We will then be able to go over all the possible forecasts and models of various investment scenarios using our cutting-edge software, in line with your risk profile, to give you an intelligent idea of what might the results might be. From there, you’ll be able to make an informed decision on how best to use your money.


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