One of the reasons investment bonds have been so popular is because investors have been able to take...
One of the reasons investment bonds have been so popular is because investors have been able to take a regular withdrawal of 5% a year of the original capital invested. If the so-called 5% rule is abolished, as seems likely, some say that there is no future for investment bonds. Top-slicing means that value gained by the bond while the policyholder was a basic rate tax payer is not taxed at the higher rate. However, others argue that the remaining advantages of these instruments would mean that they continue to be popular. These advantages include the ability to switch funds and investment ...
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