18th October 2016

Canada Life: Tax free gains? That can't be right, can it?

During his six years as Chancellor of the Exchequer George Osborne made several important changes to the way income is taxed. Take personal allowances being increased significantly above the rate of inflation, or a starting rate band introduced which from 6 April 2015 is assessed at 0%. Let's not forget, too, a new savings allowance introduced for 2016/17 tax year. 

But the adept adviser might be interested in the full potential of 'international investment bonds' which could allow individuals to benefit from some or all of these recent developments. For while an international investment bond does not produce income, any realised gains are taxed as savings income and therefore can take full advantage of personal allowances, the £5000 starting rate band and the £1000 personal savings allowance.

'Tax free gains? That can't be right, can it?' Read an analysis by Paul Thompson, one of Canada Life's technical managers, who explains why international investment bonds are valuable to many investors.

Tax, Trust & ISA