• This flexible, tax efficient bond is open to new investments from existing clients

  • Investment Bond

    A flexible, tax efficient investment that can adapt to suit life's changes.

    Your existing clients can continue to enjoy estate planning flexibility to help meet their investment goals, as well as access a wide range of well governed investment funds.

     

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    You can help your existing clients to:

    • Withdraw a tax efficient income - of up to 5% of the amount invested each year. Any Adviser Charge payments will be included within this 5% withdrawal.
    • Use our wide fund choice based on comprehensive external research and analysis.
    • Help provide for their family and prepare for inheritance tax, using our gift trust.
    • Manage the bond with portfolio rebalancing and drip feeding.
    • Get a 10 year loyalty bonus if you remain invested for the first 10 years.
    • Make additional investments into the Investment Bond.
    • Manage and review their policy, quickly and easily online.

     

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    Want a top up illustration?

    Our service team can produce illustrations for increments of at least £1,000.

    Get in touch by calling us on 0345 129 9993.

  • The Investment Bond in detail

    With our Investment Bond, your clients can allocate separate investment objectives and withdrawal strategies within different segments of their bond. For instance, a segment for their grandchildren might be a relatively long-term investment, and could feature more adventurous funds. A segment to pay for a holiday would be a shorter-term investment and might include lower-risk holdings.

    Segments can even be placed in trust or transferred to beneficiaries, without the need to cash in the bond and pay tax on the money.

    Your client can withdraw up to 5% of the initial amount invested (including any additional investment) in each individual policy year for a period of 20 years, through regular or one-off withdrawals, without any immediate tax liability. And, if they don’t use the full 5% allowance, then this can be carried over to the following year – so they don’t miss out.

    Your client won’t even have to pay income tax at the time because tax is deferred until the bond is cashed in. That’s provided they don’t take more than 5% a year, whether as withdrawals or paying your charges.

    This 5% allowance is cumulative, which means, for example, your client can withdraw 4% per year for 25 years, or if your client does not use their 5% withdrawal in one year, they can withdraw up to 10% in the following year with no immediate tax liability, regardless of their tax position.

    If they do go over the 5% annual allowance (this allowance post RDR includes any adviser charges, initial and ongoing, along with any withdrawals taken by the client - regular or one-off), then this amount may be taxed as income during that tax year.

    Other tax advantages

    • If your client's bond is set up as joint life or under trust, it lasts until the death of the last life assured. So it could outlast the lifespan of the original investor - allowing for truly long-term family tax planning.
    • Your client can switch funds without becoming potentially liable for capital gains tax.


    Inheritance tax and trusts

    The Investment Bond allows your client to set up a gift trust, so they can limit their exposure to inheritance tax and pass on wealth tax efficiently. A gift trust is an outright gift with no access to either capital or growth. 


    Managing the bond

    It’s easier than ever to manage your clients’ investments:

    • Automatically rebalance your clients' portfolios to adapt to changes in the markets*
    • Automatically drip-feed money from one fund to another over an agreed time period, to keep your clients' investments at the risk level they want.
    • You can choose how to charge your clients for your advice, from a full range of flexible options.

    *Any switches/buys/sells will stop automatic rebalancing.

    How many people can own an investment bond?

    One person or two people can own jointly, or it can be held under Trust.

    Can my client make additional investments?

    Yes. Your client can top up at any time. They will need to put in at least £1,000.

    What’s the allocation rate?

    100% with no hidden fees. This goes down to 98% where the only or youngest person included as a life assured on the bond is aged 80 or over.

    How easy is it to take out money?

    Your client can make one-off or regular withdrawals, and they can cash in some or all of their bond at any time. Please bear in mind that these actions could have tax implications. See Key Features of the Investment Bond to find out more.

    What adviser charging options are available?

    A full range is available, allowing payment to be made directly from the bond. Initial and Ongoing adviser charges are available on both a "£" or "%" basis with the exceptions being Discounted Gift Trusts - they can only be on a "£" basis.

    Do you offer drip-feeding and portfolio rebalancing?

    Yes, both of these features are offered.

    Does the bond pay a loyalty bonus?

    Yes. When your client has held a bond for 10 years, we pay 0.5% of the bond’s value as a loyalty bonus. This doesn’t apply to additional investments made after eight years.

  • Help your clients get the most from their existing plan

    Fund-factsheet-aub

    Fund information at your fingertips

    Choose from a wide range of well governed investment funds.

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    View our supporting literature

    You can find useful forms and guides in our literature library.

  • Need some help? Speak to your usual contact or call us on 0345 129 9993.

    We sometimes record telephone calls to help with training, service and security.

  • Please bear in mind

    Tax legislation could change in the future. The information here is based on our interpretation of current law and HMRC rules. The value of any tax benefits will depend on your client's personal circumstances.

    The value of your clients' investments can go down as well as up and is not guaranteed. So they could get back less than they put in.

    The Investment Bond is a medium (at least 5 years) to long term (over 10 years) investment. There is no fixed term or charge when your client cashes it in. However, we may introduce these or other charges in the future. Remember that withdrawals could have tax implications.

    We reserve the right to refuse or delay payments and fund switches in certain situations. Please see Policy Provisions section 2.3.6 for more details.

    Please remember that past performance is not a guide to future performance.