It's an investment that can adapt as your needs change, with lots of choice with the aim of helping you meet your investment goals. It’s designed for your money to stay invested for at least 5-10 years, with the flexibility to add further payments of at least £1,000 (the minimum top up amount).
You can take money out of the bond in ways designed to help you manage your tax, so that tax in effect, can be deferred until the bond is fully cashed in. It’s set up as an insurance contract, and includes a small amount of life insurance.
Please remember that the value of your
investment bond can go down as well as up. It is not guaranteed, which means
you could get back less than you originally paid in.
There are lots of reasons to invest through our bond:
We currently charge you nothing to:
The only charges you'll pay on bond is the fund charges which will vary depending on which funds you choose. There are no hidden charges - we're always clear about what you are paying. Please note you also
have the option of paying adviser charges from the bond. For more information
please read the Policy
Our Investment Bond is intended as a medium (at least 5 years) to long term (over 10 years) investment. But you can take money out of the bond if you want to, by setting up regular withdrawals. You can also take a one-off amount from the whole bond, individual segments, or even from specific funds.
For example, you might take a regular income from it and aim for the potential growth in your investments to replace what you’ve taken.
There are tax rules that apply to taking money out of bonds. You can take 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. This 5% allowance is cumulative, which means, for example, you can
withdraw 4% per year for 25 years, or if you do not use your 5% withdrawal in
one year, you can withdraw up to 10% in the following year with no immediate
tax liability, regardless of your tax position.
The bond is not tax free – but it does give you the option to defer tax until the bond is fully cashed in. Any withdrawals, including any adviser charges paid from the bond, you’ve taken that exceed the 5% allowance may be taxed as income during that tax year.
There are no limits to the amount of money you can withdraw, though in most cases if the total in your bond reduces to less than £5,000 you’ll have to close it.
There are potential
tax liabilities to consider when a policy is fully cashed-in, and you should
think about these fully before deciding to cash in. Please see the “What about
tax if I cash-in one or more policies in my Bond?” section of the Key
Features document for more information.
For more information and details, read our handy comprehensive guide to how the Investment Bond works.
Read this alongside your personal illustration from your adviser to help you make an informed decision.
We offer a wide range of funds to choose from. View our funds list and dealing guide in the literature library.
The Investment Bond allows you to set up a gift trust, so you can limit your 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.
For more information on our gift trust, please see our guide to inheritance tax.
Tax and legislation may change and the information above is our interpretation of current law and HM Revenue & Customs rules. The value of any tax benefits will depend on your circumstances.
Please remember that the value of your investment bond can go down as well as up. It is not guaranteed, which means you could get back less than you originally paid in.
You should be prepared to invest for at least 5 to 10 years.
You must be over 18 and a resident of the UK to open an investment bond.
We may delay, limit or refuse to make payments and fund switches in certain circumstances. Please see the Investment Matters section of the Policy Provisions for more details.
Please remember that past performance is not a guide to future performance.