More and more advisers are turning to onshore bonds because of these key reasons:
Watch the video to see how onshore bonds and trusts can help your clients, and why our ongoing support throughout the life of the bond is crucial.
The Collective Investment Bond - no ordinary bond
One of the key benefits of a bond is that it is considered a ‘non-income producing asset’. Income and gains are assessed on the UK insurer rather than the bondholder, and there is only a tax event for your client when there is a chargeable event. This provides your clients with tax efficiency and control, and potentially nothing to declare on their tax return (unless there is a chargeable event).
With the option to take 5% tax deferred withdrawals each year (for up to 20 years) and the ability to assign segments tax efficiently to an individual or into trust, bonds can provide long term flexibility for clients looking to access or pass on wealth in future years.
Learn more about onshore bonds in the support material below:
This feature gives your clients reassurance by protecting the value of any death benefit when a life assured dies. It works where the death of the life assured coincides with a drop in the value of the bond, ensuring that the death benefit payable is guaranteed as the higher of:
If Capital Protected Death Benefit is not selected, the standard death benefit will apply, which is 100.1% of the value of the bond. For more details read our Capital Protected Death Benefit guide.
With tools, calculators and a wealth of technical expertise, you have everything you need to: from assessing suitability to ongoing support for the life of the policy.
To help you decide if an onshore bond is right for your client, you can use our handy net return calculator. This compares the potential net returns on three different investment products; a general investment account, an onshore bond and an offshore bond.
Do you have clients holding a general investment account? See if you can reduce their tax liability with our ongoing tax comparison tool.
Access all the tools you need to calculate the chargeable gain and top slicing relief for your client’s bond.
Due to the way bonds are taxed, they are the perfect wrapper to gift into trust. As there is no tax to pay on an arising basis it is simpler for the trustees to manage, with less administration. Assignment of segments by gift into trust is not a chargeable event for income tax purposes, making it an efficient way to transfer wealth.
With Quilter, our bond can be placed into trust at any point in the future (except the Loan trust) – proving flexibility to meet the client’s changing IHT needs.
Step into the minds of our trust and technical experts with a choice of support material they’ve produced, including videos and articles.
