The content of this site is aimed at financial advisers only.
Click here for the customer site.
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.
Our service team can produce illustrations for increments of at least £1,000.
Get in touch by calling us on 0345 129 9993.
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.
tax and trusts
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.
than ever to manage your clients’ investments:
*Any switches/buys/sells will
stop automatic rebalancing.
How many people can own an
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.
you offer drip-feeding and
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.
Choose from a wide range of well governed investment funds.
You can find useful forms and guides in our literature library.
We sometimes record telephone calls to help with
training, service and security.
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.