Individual Savings Accounts (ISAs)
ISAs allow you to build up tax-efficient capital for the future. A husband and wife can invest up to £7,000 each in this current tax year.

Stock market bonds
You pay a lump sum for a fixed term - normally around five years. In some cases there is a guarantee you will get your capital back in full at the end of the term, even if share values fall.

With-profits bonds
You pay a lump sum into your chosen company's with-profits fund to buy a bond made up of a broad range of investments, including shares, fixed-interest stocks such as gilts, and even property. On retirement you could withdraw up to five per cent of your original capital each year, for up to 20 years, with no tax to pay initially.
Withdrawals exceeding 5 per cent per annum may incur a potential tax liability - we can assist you with this.

Distribution bonds
Distribution bonds pay out an 'income' in a very tax-efficient manner and can be useful holdings both before and during retirement. Income can be re-invested if it is not currently required.

Venture capital trusts (VCTs)
VCTs invest in newer companies or ventures. They can offer great tax advantages throughout their life, but are not for the cautious investor.

Property bonds
If your existing portfolio already includes shares and fixed interest stocks or corporate bonds, then a property fund could provide additional diversification.

Article date January 2004