This month our Short guide to series moves away from trusts and turns its attention to the taxation of investments. Margaret Jago outlines the issues relating to 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 the ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes