An investment expert has suggested that any changes to capital gains tax (CGT) in the emergency budget could boost insurance bonds .
Although CGT currently stands at 18 per cent, it is expected that the chancellor, George Osborne, will announce a significant rise.
David Abbis, an insight analyst for wealth management who has authored Defaqto's latest guide on insurance bonds, explained how previous changes to CGT had made mutual funds more attractive to invest in.
He added: "Changes to CGT which are likely to be announced in the Budget include an increase in the current rate and a reduction in the exemption threshold could prompt significant outflows from mutual funds into insurance bonds.
"Insurance bonds are life policies so the underlying funds are subject to different taxation rules than a direct investment into shares or unit trusts."
It was recently suggested by the Royal Institution of Chartered Surveyors that a rise in CGT could hit investments in the private rented sector .
CGT change could boost insurance bond investments
CGT change could boost insurance bond investments
Tue, 22 Jun 2010
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