Unit-linked Bonds

Unit-linked Bonds are essentially a further development from traditional With-profits Bonds. These products have been popular investments for lump sums for a number of reasons:

  • They are quite convenient with less ‘on-going’ paperwork than would be expected when investing in Investment Funds.
  • For some tax-payers, the ability to draw 5% of the initial investment without an immediate tax liability is very useful.
  • These investments can be easily placed into trust, which can assist in tax planning.
  • It is possible to invest in ‘on-shore’ or ‘off-shore’ Bonds.
  • Most Unit-linked Bonds are ‘life assurance contracts’. This feature is really a ‘tax-wrapper’, and allows for wealth-preservation in some instances.

Unit-linked Bonds are not as popular an investment vehicle as they were a number of years ago. In some ways, this is unfortunate, as failure to consider this type of investment can create a situation where tax is being paid without good reason. Additionally, Bonds can allow for a portfolio to be altered with minimal or no cost to the investor.

If you would like to explore Unit-linked bonds a little more, please call, email, or click the ‘contact’ button. As with all other investment advice, your two specialist are Ian & Maria. Take a look at their profiles on the ‘people’ page.