About Kamal Rauniar
Kamal Rauniar Since 6 April 2008, CGT has been charged at a flat rate of 18 per cent, making the tax position of unit trusts and Oeics more attractive than that for investment bonds which are potentially liable to income tax at 20 per cent on encashment of the bond, if you are a higher rate taxpayer (ie the difference between the basic rate of 20 per cent and higher rate of 40 per cent for tax year 2008-09). Unit trusts and Oiecs can also be held in Individual Savings Accounts (ISAs) where they are sheltered from most income tax and all capital gains tax. Interest paid out on bond funds within an ISA is tax free and there is no further tax to pay on any dividend income on equity funds. All capital gains within ISAs are tax free.
Gives independent financial advice for Retirement Solutions, an IFA