ISAs, Bonds and Personal Portfolios

ISA’s

  • ISA’s provide a tax free method of either saving or investing, depending on whether a Cash ISA or Stocks & Shares ISA is chosen.
  • A common use of product is the Bed & ISA, which allows you to move existing stocks and shares into an ISA account in order to utilise annual CGT allowances.
  • The government have initiated a scheme called the ‘Help to Buy ISA’ which adds 25% to your existing funds (up to a maximum of £3000) to help first time buyers.
  • ISAs are now commonly used to boost retirement income, due to limits on lifetime pension savings, as well as allowing investors to grow funds and withdraw funds in a tax efficient manner.
  • For the 2016/17 year a maximum of £15,240 can be put into ISA’s. The following year the same amount can be put in again if the ISA allowance remains constant at £15,240.

Offshore Bonds

  • Offshore bonds are essentially a tax efficient investment that provide a tax deferred income.
  • They are suitable for clients wanting flexibility, regular income and tax efficient growth. They can also be used to gift money to children in a tax efficient manner, whilst at university for example.
  • Offshore bonds are liquid; this means that you can withdraw the funds at any time without facing penalty.

Onshore Bonds

  • Onshore bonds are similar to offshore bonds, however they different tax rules and regulations. They pay 20% tax at source, whereas offshore bonds don’t.
  • They also help to reduce the amount of income tax paid by higher/additional rate tax payers.

Personal Portfolios

  • Personal Portfolios are beneficial when a client has used their annual product and personal allowances and still want to achieve a level of growth with excess available funds.
  • They are normally used as a location to store money until ISA’s can be topped up again, with added benefit of potential investment growth.
  • Personal Portfolios also provide access to a diversified range of investments, providing access to a wide range of funds and equities, ETF’s and investment/unit trusts.
  • These products can be contributed to whenever the policy holder wishes to, i.e. regular contributions are not a necessary.

The Old Bray Financial team, located in Maidenhead, Berkshire, will work with you to find and structure the best, most suitable portfolio planning solutions.

For more information, please get in touch.

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