Online wrap service, Transact, is to offer an onshore bond after A-Day but is likely to opt for the traditional mirror fund method rather than adopting plans for calculating investors' tax liabilities on each asset. Assets within investment bonds technically belong to the insurance company itself. It therefore faces a corporate tax liability on gains made and needs a method of passing this onto investors. Typically groups such as Skandia and Selestia open mirror funds that are priced to take account of the tax liability. Transact is considering this as an option but has also tried to work...
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