Our onshore bond is only available through a regulated financial adviser.

It increases your options for investing in products with tax-efficient wrappers without limiting choice on a range of adviser platforms.

Retirement is no longer just about pensions. Structuring a tax-efficient income stream from a range of tax wrappers is becoming increasingly important to help people meet their financial goals throughout life.

HMRC reduced the tax-efficient dividend allowance from £2,000 to £1,000 a year on 6 April 2023, impacting the effectiveness of assets held in a general investment account (GIA).

The open architecture bond allows you to replicate your centralised investment proposition across all wrappers for your clients. The results are greater consistency and a straightforward way to manage different risk profiles.

 

What are the aims of the Onshore Bond?

  • Grow your clients’ investments over the medium to long term (at least five years and ideally longer) through a life assurance policy that offers the potential to defer higher and additional rate tax on income and growth.

  • Provide a tax-efficient income stream should your clients require it.

  • Provide access to a wide range of investments, which comprise the underlying assets.

 

What are the benefits of using a bond?

  • Bonds aren’t considered income-producing assets, removing the need for individuals or trustees to complete self-assessment tax returns.

  • Fund switches can take place without the need for tax reporting and without giving rise to capital gains tax (CGT).

  • 5% of the original capital can be withdrawn from the bond without an immediate tax liability for 20 years cumulatively.

  • Top-slicing relief can be used when chargeable gains cross the threshold into higher rate tax.

  • Bonds can be placed in trust and taken out of a trust without rise to an income tax charge or CGT.

 

Who might consider an Onshore Bond?

The Onshore Bond is aimed at private clients and trustees in a wide range of circumstances:

  • Looking to use their full CGT tax allowance every tax year.

  • Require regular tax-efficient withdrawals.

  • Regard simple tax administration as an advantage.

  • Higher or additional rate taxpayers:
    • Who expect to become basic rate taxpayers when the bond is surrendered (such as on retirement)
      or
    • Who can assign the bond to a basic rate taxpayer (such as a spouse) before surrender.
  • Looking to mitigate the effects of inheritance tax by taking advantage of specialised trust arrangements.

Guides

  • Former CASLP Clients

    Onshore Bond Statement For Client Suitability Letters

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  • Former CASLP Clients

    Onshore Bond Target Market

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  • Former CASLP Clients

    Onshore Bond Terms & Conditions

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  • Former CASLP Clients

    Onshore Bond Product Guide (Key Features)

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  • Former CASLP Clients

    Onshore Bond Key Information Document (7IM)

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  • Former CASLP Clients

    Onshore Bond Key Information Document (Parmenion)

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  • Former CASLP Clients

    Onshore Bond Key Information Document (Morningstar Wealth Platform)

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  • Former CASLP Clients

    Onshore Bond Key Information Document (Ascot Lloyd)

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  • Former CASLP Clients

    Onshore Bond Features And Charges

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  • Former CASLP Clients

    Onshore Bond Key Information Document (Morgan Lloyd)

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Applications

  • Former CASLP Clients

    Onshore Bond Application Form

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  • Former CASLP Clients

    Onshore Bond Investment Management Agreement

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  • Former CASLP Clients

    Onshore Bond Top Up Form

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  • Former CASLP Clients

    Onshore Bond Request To Change Investment Wrap Platform

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