• I can give my client a tax-efficient investment that does what they need it to

  • Our Onshore Investment Bond – a flexible, tax efficient way to invest

    There are lots of reasons why clients might want to invest: from retirement and estate planning, to school fees for their grandchildren. With our 2016 5 Star Defaqto rated* Onshore Investment Bond, they can invest for the medium (at least 5 years) to long term (over 10 years) in a tax-efficient way, with the flexibility to use their investment for different purposes.

    Request a top-up illustration by calling us on 0345 129 9993.

  • The Investment Bond at a glance

    • Flexibility with segmentation - segment the investments in the bond, so your client can allocate separate investment objectives and withdrawal strategies.
    • Tax-efficient withdrawals - your clients 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 having an immediate tax liability. 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.
    • Helps plan for inheritance tax - your client can provide for their family and prepare for inheritance tax, using our wide range of trust options.
    • Easy to manage and review online. Your client can see how their investments are doing too, with their own log in, as long as it's not in trust.

  • The Investment Bond in detail

    With our Investment Bond, your client has the flexibility to split their investments up into individual policies or segments. 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 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 you set up the bond 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

    If your client sets up a trust, they could also limit their exposure to inheritance tax. There are a range of trusts (each trust has two versions – bare and discretionary) and options to choose from depending on how your client would like to access their investment. They can choose:

    • A discounted gift trust, so they can take regular withdrawals over their lifetime
    • A loan trust, giving them access to capital but not to growth
    • A gift trust, with no access to either capital or growth

    To help you and your client decide on the best option, you can:

    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
    • Get technical support on investment strategy and tax planning, making it easy to offer more expertise
    • You can choose how to charge your clients for your advice, from a full range of flexible options

    Whenever you want, find the information you need to service and act on investment changes for your clients. You can:

    • Create valuations showing what your client’s bond is worth
    • Switch between different funds
    • Show your client their investments online
    Who can apply?

    Existing investment bond holders who are UK residents aged 18 or over.

    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 many people can your client include as lives assured on the bond?

    Up to four people. Those people must be at least two years old and one or more must be under 85 when your client buys the bond. We will pay 101% of the cash value of the bond when the last person’s life ends.

    How can my client split up their bond?

    A bond can be split into 99 segments. Your client can invest each segment in different funds and assets, but they must put at least £500 into each segment.

    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.

    What trusts do you have available?

    You can choose from the discounted gift trust, loan trust, and gift trust. We also offer Bare and Discretionary versions for each of these trusts.

    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.

  • Need some help? Please speak to your usual AXA Wealth 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.

    * The Investment Bond achieved a 5 Star Defaqto rating in 2016 in the Onshore Bonds category. Please remember that past performance is not a guide to future performance.