• This offers an opportunity to invest to help meet my different goals

  • The Onshore Investment Bond – a tax efficient investment

    If you’re thinking about boosting your retirement plan, or looking to pay grandchildren’s school fees, you might want to consider investing in our Onshore Investment Bond.

    You can combine medium-term investment goals with long-term financial planning for your family’s future. And you can make regular withdrawals, of up to 5% of the original investment a year for 20 years, without any immediate tax liability.
  • Understanding our Investment Bond

    It’s a way to invest at least £15,000 in a range of funds, 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 choose our bond:

    • You can design the bond to meet your goals, by choosing from our wide range of funds to meet individual needs
    • To help you respond to changing markets or your own circumstances, you can easily take money out or move it between funds - we currently charge you nothing to cash in early or to switch funds, although a charge could be introduced in the future. Please note there could be delays whilst you move between funds, or when you cash in all or part of your bond. Please see the Investment Matters section of the Policy Provisions for more details.
    • You can segment the investments in the bond for different purposes - this also gives you more options about how to make withdrawals
    • To help with estate planning, you can place your bond in one of our range of trusts, a tax efficient way to pass on your wealth to family members
    • Plus you can go online whenever you like to see how your bond is doing (provided the bond is not in trust)
    5 Star Defaqto rated in 2016 for features and benefits

    We're one of only six providers with a 2016 5 Star Defaqto rated investment bond. This recognises the comprehensive range of features and benefits that you can choose from, although past performance is not a guide to future performance.

    We currently charge you nothing to:

    • start your bond*
    • add investments
    • switch between funds
    • take one-off or regular withdrawals
    • cash in the bond

    (*Only 98% of your investments buys units if the youngest life assured is age 80 or over)

    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 Provisions.

    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 when you start your bond or at a later date. 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.

  • Literature light blue

    Read our guide

    For more information and details, read our handy comprehensive guide to how the Investment Bond works.

    DeepInDepthResearch green

    See the key features

    Read this alongside your personal illustration from your adviser to help you make an informed decision.

    QuickGuide dark blue

    Investment Bond fund list

    We offer a wide range of funds to choose from. View our funds list and dealing guide in the literature library.

  • How our Investment Bond can help you with estate planning

    The Investment Bond allows you to set up a trust, so you can limit your exposure to inheritance tax and pass on wealth tax efficiently. We offer a range of trusts to help get you started.

    The trusts vary depending on the level of access you need to your investment's capital and growth and are all offered on a bare or discretionary basis. You can choose:

    • A discounted gift trust, so you can take regular withdrawals over your lifetime
    • A loan trust, giving you access to capital but not to growth
    • A gift trust, an outright gift with no access to either capital or growth

    For more information, including explanations of the different types of trust available, please see our guide to inheritance tax.


    Consider splitting your bond into segments

    Splitting your bond into smaller individual policies, or segments can also help with management, allowing different investment strategies for each beneficiary such as your partner, or your grandchildren. Our bond is able to be established with up to 99 individual policies. Each policy or segment is subject to a minimum investment of £500.

    Inheritance tax and estate planning are complex areas. If you want to find out whether holding your bond under trust might be suitable for you, see guide to inheritance tax or speak to your financial adviser.

  • Need financial advice? Find a financial adviser who's local to you
  • Please bear in mind

    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 need to put in at least £15,000 to open the bond. 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.

    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.