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The key step when deciding who pays the tax on a gain under an investment bond is to establish who the owners of the bond are when the gain arises. The tax treatment then depends on whether the bond is individually owned or held under a trust / the type of trust.
When selecting investments for your portfolio, the dominance principle of investing is something that you must know. While it is a somewhat intuitive principle, it's always a good idea to review what it means and how it applies to your investment portfolio. The dominance principle states: Among investments with the same rate of return, the one with the least risk is most desirable.