Monthly income from £140,000

Chrismaths

Nice emphasis. Here's a little of my own.

So most people...

What about the others? HR tax payers?

But outside the bond there is no need for basic rate taxpayers to pay any tax at all.

What about basic rate taxpayers who receive benefits or might need care?

Ignoring the circumstances as usual.

you pay 20%

Not on equities. You get indexation and income is in your words "tax-free", in mine, the liability is settled by the tax credit. So if dividends and capital growth are roughly similar, you pay an "extra" 7-10% in tax. If you're on benefits, or currently pay CGT, or are a HR taxpayer and will be a BR taxpayer in the future, you save tax/benefits.

ReportInvestor

"Most people" are not higher rate tax payers nor are they on benefits nor are they about to receive care.

So it's a fair point.

dunstonh

Spot the irony.

1 - Ed acuses the investment bond as paying tax behind the scenes and being unsuitable for that reason but then recommends alternatives that do exactly the same.

2 - Ed acuses people selling investment bonds as giving the impression they are tax free yet again recommends alternatives which she says are tax free but they also have tax on them behind the scenes.

oldfella

could I suggest someone writes an article pulling all the pros and cons together - I am loosing interest in all this sniping

Mike