Tuesday, April 24, 2007

Financial Advisers in Swindon: A survey

Recently a client approached me for financial advice. The client is moving abroad & wants to take an income from their capital.

They approached their bank and another Independent Financial Adviser (IFA). The advice they got was rather worrying. My client wouldn't be regarded as tax payer in the UK, however strangely neither the bank or IFA picked up on this.

I recommended to the client using his ISA allowance and investing in Unit Trusts/OEICs. The client wouldn't need to pay income or capital gains tax on gains.

The Bank and other IFA suggested the client invest in Investment Bonds. You pay 20% tax on any gains immediately at source...also interestingly a high commission is generated.

Conclusion: Hmmm

PS Investment Bonds can be extremely useful for Higher Rate Tax payers. Basic tax

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