Halifax Gauranteed Growth Bond

EdInvestor

Q: Is the product tax free?

A: No, we pay corporation tax on income and capital gains from the
investments held within the Guaranteed Growth Bond. We pay this
tax from the money in the fund and you cannot reclaim it.

If you are a basic rate taxpayer you can hold these investments outside the bond and pay no tax on income or capital gains.So why would you bother with the bond, where you cannot reclaim the tax?

dunstonh

EdInvestor wrote: »

If you are a basic rate taxpayer you can hold these investments outside the bond and pay no tax on income or capital gains.So why would you bother with the bond, where you cannot reclaim the tax?

How does a basic rate taxpayer pay no tax on interest? (ignoring cash ISA)

Banker54

dunstonh wrote: »

I dont believe Halifax sales reps earn any commission as such. Its target/bonus related

For the normal branch staff its bonus related not commision based, but for the financial advisers they earn commision on what they invest.

blizeH

Huge thanks again for the replies guys, think I might just invest the full £20k~ into Premium bonds because they're simple and there's no chance of my screwing up with those, heh.

dunstonh

Premium bonds are wasteful. If you get the average winning then your money will be going down in real terms.

They are not an investment but a gamble. Would you think about putting your money in a building society account and drawing the interest each month to buy scratch cards?

blizeH

Good point

*sigh*

I'm tempted just to leave it in the 5.15% interest account I've got at the moment, but I don't know. Maybe move £10k~ to Icesave for an extra 0.5%~ or so.

jem16

blizeH wrote: »

Good point

Maybe move £10k~ to Icesave for an extra 0.5%~ or so.

Soon to be extra 0.8% extra.