Using Budget changes to cast a wider net

The investment schemes in question were where the client return was made up largely by the rebate of commission from portfolio bonds that were invested in cash. The bond would carry an initial charge to cover the commission in the form of a reduced allocation rate – say 95%. At the end of a 12-month period the client saw a return of capital from their bond with the addition of interest earned in the cash fund. The chargeable gain at the end of the year was at or near zero. But since the commission rebate was not taxable, the yield over 1-yr was highly attractive. In the wording of the ann...