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	Why would you invest in a unit-linked bond? If you are looking for a combination of growth and ‘income’ over the medium- to long-term, a unit-linked bond could be the right option for your needs. It may involve more risk than a bank or building society savings account but the potential for growth can be greater depending on your choice of funds. A unit-linked bond offers you the flexibility to adapt your fund choices over time, to stay in line with your changing financial goals. Here are some of the specific benefits of a unit-linked bond: Roll over the image to reveal more information. Tax deferred regular withdrawals – for 20 years you can withdraw up to 5% each year of your original investment without creating an immediate tax liability. No need to fill in an annual tax return – onshore bonds are classed as non-income producing assets, which means as long as you stay within the tax deferred withdrawal limits, there’s no need for individuals or trustees to fill out annual tax returns for their bond investment. Simplified fund switching – you can switch funds without generating a personal capital gains tax or Income tax liability. Trust planning – because of their structure, bonds can be ideal investments to be held within a trust, and are often used to help reduce inheritance tax bills and avoid probate Potential to reduce your tax bill – unit-linked bonds are made up of a number of segments. At any time you can assign one or more segments to someone else. This can be particularly useful in reducing the amount of tax you need to pay.	Printer friendly version. Glossary. Adviser Extranet. UK Client Extranet. Swedish Client Extranet. what does it take to be a 5 star provider? Skandia has three of only six Defaqto 5 Star rated onshore bonds in the market and more Financial Adviser 5 Star Service Awards than any other provider Find out more about Skandia's top quality onshore bond range Download this month's fund ranges brochure. Check today's fund prices and the latest performance and factsheets
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Why would you invest in a unit-linked bond?