Investment

Investment Products

We offer specific advice on pooled investment products, including:

• ISAs and PEPs
• Unit trusts and OEICs (Open Ended Investment Companies)
• Investment bonds (onshore and offshore) Information Sheet: Understanding bonds
• Offshore funds
• Pensions

In many cases, the same unit trust or OEIC fund could be invested in directly, or via an ISA, PEP, investment bond or pension wrapper. The wrapper will determine how the underlying investment is treated, for income tax and capital gains tax purposes. For example:

• ISAs, PEPs and pensions all offer tax-free growth and income, with the exception that the tax credit on UK dividend income cannot be reclaimed;
• Pension contributions attract tax relief, but there are restrictions, in terms of the timing and method of taking benefits from the fund;
• Unit trusts and OEICs are liable to income tax and capital gains tax;
• Investment bonds gains do not distinguish between income and capital growth and have their own special tax regime, with basic rate tax paid within the fund.

The optimum solution often involves a combination of different wrappers, to take advantage of all tax allowances available (for example, many investors pay significant income tax on investments, but fail to take advantage of their annual capital gains tax allowance).

In some cases, especially in relation to inheritance tax planning, there is a third level of decision, in deciding which trust arrangement (if any) to use.

We do not offer specific advice on, or arrange investment directly into equities, bonds or property. It is vital, however to take existing assets, or planned purchases, into account, when considering an overall investment strategy.

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