Investment Bonds
Bonds is a term that is used widely in the investment industry meaning many different things. In this particular circumstance, they are a type of investment plan that is managed by an insurance company. The fact that they are managed by an insurance company means that they receive special tax treatment, making them tax advantageous for certain investors. In particular, it is possible to withdraw up to 5% per annum as income without any tax payable immediately. Under the present tax regime, they are likely to be suitable for basic rate taxpayers seeking a low risk investment with a high income yield. In many circumstances, they would also be suitable for higher rate taxpayers seeking growth or income from their investments. The main drawback is that they will involve you in additional costs over and above the cost of simply leaving the money on deposit. However, they do offer you the opportunity for some tax planning and the potential for superior returns.
PLEASE NOTE RONNIE B MORTGAGES GIVES NO ADVICE IN CONNECTION WITH
INVESTMENTS