Tax planning: Revisiting the benefits of investment bonds

With the recent alignment of onshore and offshore bonds in relation to time apportionment relief, it is a timely opportunity to revisit the tax benefits of an investment bond. Tax-deferred withdrawals It is possible to take yearly withdrawals of 5% of the initial premium (and any additional premiums from the year in which they are added) without an immediate UK tax charge. Furthermore, the 5% is cumulative if not used: so, where no withdrawals are made in year one, 10% can be withdrawn in year two and so on. The allowance continues until all of the original investment has been withd...