Investment bonds are lump sum investments used to invest in a wide range of funds and assets with the aim of providing capital growth. Your investment is pooled together with other investor’s savings and managed by a fund manager. Investment bonds are seen as medium to long-term investments, typically greater than five years.

Our investment bond service
Our investment bond service reduces the up front charges you normally pay when you invest directly with an insurance company. We research all of the leading investment bond providers and enhance your investment by discounting our commission or enhancing the product terms to provide you with the very best terms for your investment bonds. This discount is not available when you invest directly with an insurance company. Request a quote and application pack.

Choice of bonds
Our discount service is available for with profit investment bonds, distribution bonds, guaranteed equity bonds, ethical investments, unit linked bonds and offshore bonds. This wide choice of investment bonds provides you with the opportunity to invest with the leading investment management groups and inline with your investment objectives.

Choice of funds
An explanation of the different funds available and the risk associated with each fund and asset class, together with online past performance data and detailed fund fact sheets for all qualifying investment funds can be obtained from our fund performance pages. You can also download our ethical investment questionnaire from our document centre.

Choice of structures
Investment bonds are designed around two basic charging structures; an initial charge structure and an establishment charge structure, both offering the choice of with and without early exit penalties. Initial charged investment bonds are designed to take all of the costs from your bond upfront, whereas establishment charged bonds are designed to spread the charges, normally over the first five years. Investment bonds containing early exit penalties are normally establishment charged bonds, and the exit penalty is designed to recover costs if you withdraw your savings in the early years.

Enhancements & discounts
Our enhancements and product discounts for investment bonds change on a regular basis and depend on the terms we negotiate with the investment management groups and insurance companies. Typically our enhancements range from 3% – 6%. This represents an immediate enhancement of between £1,500 and £3,000 for a £50,000 investment. Our enhancements are in addition to any product discounts and special offers available from the investment management groups or insurance companies.

Offshore investment funds
Offshore investment bonds allow you to invest into a much wider range of specialist investment funds. Many offshore bonds provide you with access to the worlds leading specialist fund managers; a service normally only available to professional investors and institutions.

Tax planning
Investment bonds can be used as a tool to mitigate or reduce both inheritance tax and personal tax. A wide range of UK and offshore trusts are available. Use our inheritance tax calculator to see if you have an inheritance tax liability.

Taxation of investment bonds
UK investment bonds pay the equivalent of basic rate tax at source within the fund. This can be very beneficial for higher rate tax payer’s who defer any potential liability to higher rate tax. It is tax neutral for basic rate tax payers, but can be a disadvantage to non tax payers as they can not reclaim the tax paid on the fund.

Offshore investment bonds do not pay UK tax within the fund. This provides you with the benefit of gross investment growth. You may be liable to taxation when profits are transferred back into the UK depending upon your tax situation at the time.

Taking regular withdrawals
Investment bonds allow you to take regular monthly, quarterly or annual withdrawals from your fund. If these withdrawals total 5% or less of your original investment in any one year they are treated as a return of capital and are not subject to taxation.

This facility can be used to create a tax efficient “income” for higher rate taxpayers and people over 65 with age related tax relief as it defers, or removes totally, the tax liability until the bond is finally surrendered. Subject to the investment bonds terms you are free to take higher regular withdrawals but these may be subject to taxation.

Review service
Poor investment performance or high charges can result in underperformance of your investment bond. Our investment review service is designed to assess the investment performance of your existing investment bonds and their charges against their peers, and your attitude to investment risk. If your investment bond funds are underperforming or your funds are out of line with your attitude to investment risk, a revised profile will be provided.

Alternative options
ISAs and investment trusts allow you to structure your investment in a different way. These investment plans can provide tax efficient income and capital growth and can allow you to offset gains against your capital gains allowances.

Traded endowments, known as second hand endowments, allow you to invest into a plan with underlying guarantees with opportunities for capital growth.

Guaranteed equity bonds allow you combine the growth potential of the stockmarket with 100% capital protection of your investment.

To request a quote
Complete our online investment bond enquiry form or call one of our specialist investment advisers to request your free investment bond quote. As an internet based firm of independent financial advisers we provide advice over the telephone, via email and through the post. Dealing with you in this way allows us to discount our charges and commissions to provide you with the very best discounted investment bonds.

Help & advice
There are many different options to consider when choosing an investment bond and it makes sense to take advice from a qualified investment specialist who is independent and can offer you products and services from the whole of the market place. Please call one of our independent advisers or contact us to discuss the different options available to you and to request a quote for your investment bond.