Standard Life has re-entered the onshore investment bond market with the relaunch of its Tailored Investment Bond in anticipation of tax rule changes.
Standard Life said recent Budgets have reinvigorated advisers’ and clients’ interest in onshore bonds as they seek smarter ways to tackle the changing Capital Gains Tax (CGT) and Inheritance Tax (IHT) landscape and address other emerging tax issues.
The Tailored Investment Bond, which facilitates tax deferred growth and is not subject to CGT, can be placed in trust or assigned, potentially avoid IHT charges. It gives investors access to a wide range of asset classes and offers access to new external multi‑asset funds from HSBC, Vanguard, CT Threadneedle and L&G & BNY Mellon, as well as flexible access to withdrawals.
The minimum investment required is £15,000 and top-ups start from £2,500 and regular withdrawals are available up to 10% of the original investment each year, with the first 5% on a tax-deferred basis. Fund switching is available penalty-free, providing flexibility to manage investment strategies as market conditions evolve giving advised clients greater control over their investment.
Adviser charging is supported for both initial and ongoing advice, which can be taken from the bond as a withdrawal, maintaining the integrity of the bond as a tax-efficient investment.
Warren Bright, head of retail intermediary and private client distribution at Standard Life, said: “The advice market is adjusting to some of the most disruptive changes in recent memory with alterations to IHT and CGT requiring advisers to realign retirement strategies for clients. This has seen a resurgence in interest in onshore bonds and the underlying tax efficiencies they provide.
“Using our bond market expertise, the Tailored Investment Bond development now sits alongside our well-established International Bond, to provide a comprehensive range of solutions that meet the increasing wealth protection and estate planning needs of advisers.”
