Investment Bond Tax

Snich76

dunstonh wrote: »

Why do you want to choose an inefficient tax wrapper?

Not being a financial advisor hence not knowing all the options open to me, I was told an Investment Bond is just more of many examples of ways of investing which reduces tax on profit (having already used our allowance for Stocks and Shares ISA's). I realise it is not the only option open to me hence the request for alternatives other than a fixed rate savings account but if you believe it is inefficient I would love to know why and hear your alternatives. You mentioned the charges are higher than normal, but from the information I have on the managed investment fund offered by my IFA firm, the charges are the same regardless of what wrapper is used (investment bond, ISA etc.)

I obviously will seek advice from an IFA with regard to my options but rather than just rely on one persons advice, I thought I would seek the advice of others on this forum, and maybe go armed with options prior to meeting an IFA.

dunstonh

, but from the information I have on the managed investment fund offered by my IFA firm, the charges are the same regardless of what wrapper is used (investment bond, ISA etc.)

That can be the case with some platforms now. However, insurance based ones tends to be higher for external funds and lower for internal.

However, it doesnt get round the fact that the tax is likely to be higher than unwrapped investments (already mentioned on this thread)

Snich76

By "unwrapped" I am assuming you mean direct investments and purchases of shares with companies chosen by me. Can anyone recommend an online share dealing account that a novice like me can open which makes it easy for beginners like me to deal in shares (e.g. http://www.iii.co.uk/sharedealing/)?

jem16

Snich76 wrote: »

By "unwrapped" I am assuming you mean direct investments and purchases of shares with companies chosen by me.

No unwrapped can also mean purchasing funds.