Mark Green, head of tax & estate planning at Legal & General, explains how investment bonds can breathe new life into capital growth.
With interest rates continuing at their all time low and income tax rates of 40% (or even 50%), income-seeking investors are finding it difficult to achieve meaningful returns and are turning their attention to those asset classes that achieve returns in the form of capital growth. This allows the investor to use their annual capital gains tax (CGT) exemption before paying CGT at 18% or 28%. However, although investors appear to be paying a lower rate of CGT compared with income tax, they are paying CGT on the entire gain of an asset, even where the gains are purely attributable to infla...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes