Aviva bond sales drop 15% on CGT uncertainty

The drop in the first three months of the year included a 40% fall in unit-linked bonds as customers awaited the Budget, which abolished taper relief and introduced a flat rate of 18%. Aviva anticipates sales will continue to drop over the year as CGT and volatile equity markets worry investors. However, with-profits bonds sales grew 30% to about £400m and offshore bonds rose 19% to about £85m as guaranteed investments attracted consumers. Meanwhile, life and pension sales fell 3% to £2.7m and investment sales fell 34% to £43m as consumers have adopted a short-term outlook for saving....