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Excluding the smaller premium Isa, UK unit-linked bonds remained the most popular non-pension packaged product among financial advisers in 2008, according to the research company.

Defaqto's third annual report, Down But Not Out, revealed more than half of 500 financial advisers surveyed said this was the product they sold the most in the last year.

Fraser Donaldson, principal consultant for investments of Defaqto, said: "Considering that some commentators declared UK unit-linked bonds dead in the water following the announcement of changes to the CGT regime in the pre-Budget report of 2007, these figures must be very encouraging to life companies.

"This is testimony to the hard work that has been put in developing products such as the third-way solutions guaranteeing capital and/or income, continuing expansion of investment choice and the improvement of ancillary services particularly in the online area.

"This development, coupled with the existing expertise and assistance that the life company has always been able to make available, such as in the more complex arena of estate planning, has meant that many advisers remain loyal to the life offices."

Jason Evans, partner of Bristol-based IFA Kohn Cougar said he did not use bonds mainly because of the changes to the CGT rules.

"He said unless people used their CGT allowance or a higher rate tax payer who wants to defer tax for 20 years there are better investment vehicles especially as CGT has reduced down to 18 per cent.

"Unless people use up their annual CGT allowance of £9600, and not many people do, they will not have an issue so there is no need to use them."