A life assurance bond is a lump sum investment which comes with whole of life cover.
The big attraction for many investors is the life cover, but also the ability to make a withdrawal of 5% per annum of the initial investment on a tax deferred basis.
Life Assurance Bonds - Key Features.
- The five percent annual allowance for withdrawals can be saved up, so after 10 years if nothing has been withdrawn previously, 50% of the investment can be withdrawn
- Bonds are very good for trust and inheritance tax planning as they contain whole of life assurance. A range of tax efficient trusts are available with a bond.
- Bonds are likely to be suitable for clients who use their capital gains tax allowance each year and are higher rate tax payers
- Investors are able to transfer ownership to defer or reduce any personal tax liability.
- Bonds are likely to be attractive to those who will be a lower rate tax payer when they take the benefits, but were higher rate tax payers at the point of investment.
Call ca financial services on 0845 371 0262 or 01732 617950 to discuss how you could benefit from life assurance bonds and add value to your money.