Bond transfers should be tax free - Cofunds

It says presently there is a major barrier to moving assets, as the only way to transfer a single premium insurance bond is to cash it and to take out a new contract with the new insurance company, generating tax charges. As no cash is surrendered to the investor, Cofunds says this process should no longer be taxable, allowing moves to cheaper contracts with greater fund choices. “Any eventual surrenders would use the cost of the original investment for calculation purposes,” Cofunds says. “This would be at worst revenue neutral as the base cost of the original investment would be carrie...