Last week, I looked at how the proposed capital gains tax changes might influence the choice of an investment wrapper. At a superficial level, the proposed new flat rate of 18 per cent looks to be significantly more desirable than a 40 per cent income tax charge and even a 20 per cent income tax charge. I suspect it is this that has led to the conclusion reached by some of bonds being dead in the water.
Since last year’s reforms to pension legislation, a significant number of retirees have chosen income drawdown over purchasing an annuity. Income drawdown is more flexible than an annuity. However, it also increases the likelihood that individuals won’t be able to maintain their income throughout their lifetime. In this short video, we explain the risks that […]