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