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  • Home
  • About Us
    • Our Company
    • Our Team
    • How We Work
    • Client Charter
  • Services
    • Protection
      • Why Protection is Important
      • Life Assurance
      • Family Income Benefit
      • Income Protection
      • Private Medical Insurance
      • Critical Illness
    • Wealth Management
      • Introduction to Wealth Management
      • Relationship Management
      • Lasting Power of Attorney
      • Trust Information
      • Wills
    • Business Protection
      • Introduction to Business Protection
      • Key Person
      • Share Protection
      • Directors' & Staff Benefits
      • Income Protection
      • Relevant Life Cover
      • Employers' Liability
      • Professional Indemnity
    • Taxation
      • Introduction to Taxation
      • Capital Gains Tax
      • Income Tax
      • Inheritance Tax
    • Savings & Investments
      • Introduction to Savings & Investments
      • National Savings Products
      • Endowments
      • ISAs
      • Equities
      • Collectives
      • Unit Trusts
      • OEICs
      • Investment Trusts
      • Fixed Interest Investments
      • Capital Investment Bonds
      • Offshore Collectives
      • Junior ISAs
    • Pensions
      • Introduction to Pensions
      • Occupational Pensions / Auto Enrolment
      • Personal
      • Stakeholder
      • State Pension
      • SSAS
      • SIPP
      • Executive Pension Plan
      • National Employment Savings Trust (NEST)
      • Annuities
    • Financial Planning
      • Introduction to Financial Planning
    • Mortgages
      • Introduction To Mortgages
      • Mortgage Repayment
      • First Time Buyer
      • Remortgaging
      • Standard Variable Rate
      • Fixed Rate
      • Tracker Mortgages
      • Cashback Mortgages
      • Offset Mortgages
      • Second Charge
      • Buy to Let
      • Self Build
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Capital Investment Bonds

Capital Investment bonds are life insurance contracts used for the purposes of investment. They are designed to give capital growth and/or income over the medium to long term with access to your money by taking regular or one-off withdrawals. Most bonds are designed for investment over at least five years. If you cash in your investment before that time, you are likely to be charged an early-surrender penalty.

Bonds are set up through insurance companies without the need for a check on your health status and normally people of any age can hold a bond. Bonds can be opened onshore (within the UK) or offshore (usually in the Isle of Man or the Channel Islands) to take advantage of tax concessions. The decision will depend on your personal tax situation.

Most bonds have no upper limit on how much you can invest, but barriers to entry can start higher than other investments, with a £10,000 minimum contribution being typical.

Drawing down income from a capital investment bond can be an option, though obviously any income drawn down will deplete the original capital. You may be able, depending on the policy, to make additional payments to the bond at any time, as well as one-off withdrawals.

Capital investment bonds have management charges and these vary greatly. They are usually levied as an annual fund charge or even as an initial charge and early encashment charge.

The value of investments and the income they produce can fall as well as rise. You may get back less than you invested.
Tax treatment varies according to individual circumstances and is subject to change.

Capital Investment Bonds

Capital Investment bonds are life insurance contracts used for the purposes of investment. They are designed to give capital growth and/or income over the medium to long term with access to your money by taking regular or one-off withdrawals. Most bonds are designed for investment over at least five years. If you cash in your investment before that time, you are likely to be charged an early-surrender penalty.

Bonds are set up through insurance companies without the need for a check on your health status and normally people of any age can hold a bond. Bonds can be opened onshore (within the UK) or offshore (usually in the Isle of Man or the Channel Islands) to take advantage of tax concessions. The decision will depend on your personal tax situation.

Most bonds have no upper limit on how much you can invest, but barriers to entry can start higher than other investments, with a £10,000 minimum contribution being typical.

Drawing down income from a capital investment bond can be an option, though obviously any income drawn down will deplete the original capital. You may be able, depending on the policy, to make additional payments to the bond at any time, as well as one-off withdrawals.

Capital investment bonds have management charges and these vary greatly. They are usually levied as an annual fund charge or even as an initial charge and early encashment charge.

The value of investments and the income they produce can fall as well as rise. You may get back less than you invested.
Tax treatment varies according to individual circumstances and is subject to change.

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Echo Wealth Management Ltd is authorised and regulated by the Financial Conduct Authority and entered on the Financial Services Register (https://register.fca.org.uk/s) under reference: 943133.

Registered Address: 9 Fitzroy Place, Glasgow, G3 7RH.

Registration number: SC486212 Registered in: Scotland

The information contained within this site is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

If you have a complaint about your adviser, or any financial advice you have received from your adviser, please contact us.

If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service (www.financial-ombudsman.org.uk)

 

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