Adviser Zone can help set up a number of savings plans including bonds and ISA’s depending on your client’s circumstances.

 

What is an Onshore Bond?

An Onshore Bond is a life insurance policy, they have no maturity date which means the client can decide when to sell the investment. Bonds are taxed under the chargeable event legislation which means gains by the policyholder are assessed to income tax rather than capital gains tax.

In addition, it is possible for policyholders to withdraw up to 5% of the amount invested each year without any immediate liability to tax, subject to an overall maximum of 100%.

 

What is an Offshore Bond?

An Offshore bond is very similar to an Onshore bond. It is an non-qualifying policy and is designed to accumulate income and gains within the fund. There is no ongoing tax liability until benefits are taken.

 

What is an ISA?

An ISA stands for Individual Savings Account and is a tax free way to save or invest money as you will not pay any income or capital gains tax on interest or returns your money makes. The current ISA allowance is £20k for this tax year.