Investment Bonds

With the TQ Invest bond service, you could get up to 6% extra put back into your investment.  On a £10,000 investment that's £600 simply for choosing TQ Invest.

Investment bonds are lump sum investments which invest in a wide range of funds and assets to provide investors with capital growth.  Our investment bond service reduces the upfront charges you would pay if you went direct to the provider and we enhance the investment by discounting our commission or by enhancing the product terms.

You can make monthly, quarterly or annual withdrawals; withdrawals of 5% per year or less, which can be made for up to 20 years, are classed as a return of capital and on that basis are not taxable.

When investment bonds are encashed, the profits made are taxed as income rather than capital gains. This is because the Inland Revenue deems that basic rate income tax has already been paid at a rate of 20%; so therefore basic rate taxpayers have no further liability.

Non-taxpayers - and basic rate taxpayers - cannot reclaim the tax already paid.  Because any tax liability can be deferred until encashment, investment bonds are seen as particularly attractive to higher rate taxpayers who know that they will become basic rate taxpayers at some point in the future. This means that during the lifetime of the bond they can make withdrawals and defer the liability on any tax until the policy is encashed.  If at the time of encashment, the policyholder pays tax at the basic rate, then there is a good chance that they will incur no tax liability.

To find out more about the Investment Bonds currently available through TQ Invest and how you can benefit by using our service, call the the TQ Invest Team on 0800 294 7221.