TISA has called on the Government to change investment bond transfer rules, to bring the wrapper into line with other tax-incentivised schemes, such as pensions and ISAs.
In a letter to the Treasury ahead of the 2008 Budget, TISA says the Chancellor’s proposed CGT changes have limited the attractiveness and suitability of single premium investment bonds.
The association believes if consumers are able to switch between investment bonds and/or providers without triggering a taxable event it would promote competition in the marketplace and allow people to choose the best products.
“Single premium investment bonds are a useful tool as part of many consumers’ long-term savings and retirement needs,” TISA director general Tony Vine-Lott says.
“We believe that enabling bonds to be transferred tax-free in the same way as other major savings schemes would further enhance the attractiveness and suitability of this market, while giving consumers the confidence that they can always choose the best option for their needs.”
To comment on this story, contact:
0207 034 2681
Janus Henderson Global Dividend Index
More than 10 million shares allocated
Long-term strategic holding
What made financial headlines over the weekend?
To promote 'long-term investment'