Keep your taxation simple with onshore bonds

Margaret Jago, technical manager, aegon Scottish Equitable International Onshore bonds can be an attractive investment because of the simplicity of the taxation. Onshore bonds invest in UK life funds that are subject to UK tax. Fund income not already taxed in the UK, such as interest or property income, is taxed in the fund at 20%, as are capital gains on fund assets. Dividends from UK companies are free of further tax, but will have been paid from the taxed profit of the paying company. So, overall, UK life funds grow net of tax. One of the advantages of onshore life bonds is that t...