Investment Bond in detail
- Available on a single or joint life basis (with up to six lives assured)
- Can be used with our trust plans as part of an estate planning solution
- A degree of control over the point at which liability to tax arises, as you can choose when to take the benefits
- Up to 5% of initial investment can be withdrawn each year tax deferred
- Your Investment Bond is set up as a series of individual policy segments designed to give you maximum flexibility
- The minimum number of policy segments is 100 which can be increased in multiples of 100 up to a maximum of 600
- Self assessment friendly. As investment bonds are a non income producing asset, you don't need to report anything to HM Revenue and Customs until a chargeable event occurs (i.e. when all or part of the bond value is realised, for example on death or full or part surrender)
- Set up regular or one off withdrawals
- You can invest in funds across all major asset classes (UK equities, overseas equities, commercial property, fixed interest securities and cash) in line with your objectives and risk profile
- Fund switching (currently free). You can switch your investment between the available funds should your circumstances or risk profile change without giving rise to any personal tax liability
- No early withdrawal charge on withdrawals up to 7.5% each year of the amount invested in any individual policy
- The value of an investment is not guaranteed and can go down as well as up depending on investment performance (and currency exchange rates where a fund invests overseas). You could get back less than you invested
- The range of investment funds that you can invest in carry different types and levels of risk
- We may change the selection of funds that we make available and restrictions can apply
- Taking withdrawals will reduce the value of your bond. An early withdrawal charge may apply in some circumstances. Your withdrawals could be higher than any growth achieved
- Tax treatment depends on your individual circumstances and may be subject to change in the future
- Tax rules can change
- Charges, limits and terms may change from time to time
Need further information?
View our FAQs.
Not for you?
See our other investment products.