• 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 topping up your 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 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:

    • 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 allocate separate investment objectives and withdrawal strategies with different segments of the bond.
    • To help with estate planning, you can place your bond in our gift trust, 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)

    We currently charge you nothing to:

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

    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. 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.

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    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 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.

    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 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.