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Article: How to avoid being bound by bonds When the new capital gains tax rules come in, investment bonds will not be so attractive, says Teresa Hunter
- Article from:
- The Sunday Telegraph London
- Article date:
- February 3, 2008
- Author:
CopyrightCopyright 2008 The Sunday Telegraph London. Provided by ProQuest LLC. (Hide copyright information)
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Millions of people who hold investment bonds face being left
behind when the new Capital Gains Tax rules are introduced in April.
The Association of British Insurers is calling on Chancellor
Alistair Darling to reduce the tax take on investment bonds from 40
per cent to 20 per cent to bring them into line with unit trusts and
other collective investments. These will soon see gains taxed at
just 18 per cent (down from 40 per cent) following the Government's
decision to overhaul CGT. ABI spokesman John French said: "All we
want is a level playing field and an element of certainty. This is
causing worry for elderly investors."
Many could find themselves still facing a 40 per cent tax bill, ...