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Standard Life
Tailored Investment Bond
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Standard Life
International Bond
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| Payment
limits |
The minimum amount you can first pay in is £15,000. You can make additional payments when you want. The minimum limit for additional payments is
£2,500.
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The minimum amount you can first pay in is £20,000. You can make additional payments when you want. The minimum limit for
additional payments is £2,500.
Recurrent Single Payments
£1,000 per month
£3,000 per quarter
£6,000 per half year
£10,000 per annum
Or if there is an existing bond or if a lump sum investment of £20,000 also being made
£500 per month
£1,500 per quarter
£3,000 per half year
£5,000 per annum
For additional information on payments including Recurrent Single Payments, please see the International Bond product page.
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| Age
limits |
You have to be 18 to invest in the bond and be a bond owner. The bond owner is the person who receives the proceeds of the bond. The minimum age for a life assured is 3 months and the maximum age of a life assured is 84. There can
be up to 6 lives assured. The life assured is the person who’s life is ‘assured’ under the
bond. If the last life assured dies, the investments held in the bond are cashed-in and the death benefits
under the bond are paid out. The minimum and maximum age limits apply to payments to new
bonds and additional payments to existing bonds.
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You have to be 18 to invest in the bond and be a bond owner. The bond owner is the person who receives the proceeds of the bond. The minimum age for a life assured is 3 months and the maximum age of a life assured is 84. There can
be up to 6 lives assured. The life assured is the person who’s life is ‘assured’ under the
bond. If the last life assured dies, the investments held in the bond are cashed-in and the death benefits
under the bond are paid out. The minimum and maximum age limits apply to payments to new
bonds and additional payments to existing bonds.
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| Term |
There’s no fixed term so you can invest for as long as you want. It’s intended as a medium-long term investment though so you should really
invest for at least 5 years.
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There’s no fixed term so you can invest for as long as you want. It’s intended as a medium-long term investment though so you should really
invest for at least 5 years.
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| Withdrawals |
You can make one off withdrawals when you want. Regular withdrawals can be made every:
Month; 3 months; 4 months; 6 months or year.
The minimum one off withdrawal is £500.
The minimum regular withdrawal amount is £100.
The maximum regular
withdrawal rate is 10% a year of the total paid in.
For a tax efficient income, you can take 5% ‘tax-deferred’ withdrawals each year, for 20 years, until you’ve
taken out 100% of the total amount you’ve paid in. If you don’t use any of this allowance in a specific year
it can be carried forward to future years.
Depending on how you decide to pay your financial adviser and how much you cash in, or if your bond lapses,
there may be a charge on withdrawals in the first 5 years of your bond.
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You can make one off withdrawals when you want. Regular withdrawals can be made every:
Month; 3 months; 4 months; 6 months or year.
The minimum one off withdrawal is £500.
The minimum regular withdrawal amount is £200.
The maximum regular withdrawal rate is 10% a year of the total paid in, less any one-off withdrawals.
For a tax efficient income, you can take 5% ‘tax-deferred’ withdrawals each year, for 20 years, until you’ve
taken out 100% of the total amount you’ve paid in. If you don’t use any of this allowance in a specific year
it can be carried forward to future years.
If you decide to pay your adviser from within the bond, adviser charges deducted are regarded by HMRC as withdrawals and will count towards the 5% tax deferred withdrawal allowance.
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| Investment choices |
Choose from over 170 investment funds. You
choose your funds depending on how much risk you want to take and what you want to achieve; growth, income
or both. Invest in up to 100 different funds at any one time.
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Choose from over 2,000 investment funds.
You can also invest in:
Whole of market funds
Deposit accounts
Structured deposit accounts
Or through Discretionary Investment Managers
You choose what to invest in depending on how much risk you want to take and what you want to achieve;
growth, income or both.
There’s no limit on the number of investments you can invest in at any one time.
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| Investment switches |
Switch funds at any time, currently free of charge. There is a phased investment option. This allows you to gradually invest your money into your chosen
investment funds over a year, so you’re not exposed to the unit price of a fund on one particular day.
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Switch between most investment types and funds free of charge.
Some deposit account and structured deposit
account providers may make a charge if you cash in before the end of the term of the account. We will charge
you for switching to and from any ‘whole of market’ fund.
There is a phased investment option. This allows you to gradually invest your money into your chosen
investment funds over a year, so you’re not exposed to the unit price of a fund on one particular day.
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| Tax |
We pay the tax on any gains while your money’s invested. This means if you’re a non tax payer or basic rate tax payer, you won’t normally
have any more tax to pay on the proceeds of the bond but you can’t reclaim tax that has already been
paid.
Higher rate and additional rate tax-payers will have more tax to pay on any gains when they cash in the
bond.
Any gain when the bond is cashed in is added to your income and taxed as such.
If this takes you into the next tax bracket, there are tax reliefs available that can help reduce the effect
of this and the tax you have to pay.
You should discuss your own tax position and circumstances with a financial adviser before investing.
Remember, you can also take out 5% of your initial investment each year without any liability to tax. See
the withdrawals section for more information.
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You only normally pay tax when you take money out of the Bond.* This can help you control when and how much tax you pay, by timing any
withdrawal with when you are paying a lower rate of tax or if you plan to move or work abroad in a country
with more favourable tax rates.
Any gain when the bond is cashed in is added to your income and taxed as such.
If this takes you into the next tax bracket, there are tax reliefs available that can help reduce the effect
of this and the tax you have to pay.
You should discuss your own tax position and circumstances with a financial adviser before investing.
If you decide to pay your adviser from within the bond, adviser charges deducted are regarded by HMRC as withdrawals and will count towards the 5% tax deferred withdrawal allowance.
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| Inheritance planning and passing on wealth |
Choose from a choice of trusts to help with estate planning.
You will find more information about using trusts in 'Protecting your assets' guide (IHTS10) and the Bond Key Features document (TNB17).
You can also assign all or part of your bond to another adult. They then own
this part of the bond, can choose their own investments and pay tax at their own income tax rate on any
gains when they cash it in.
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Choose from a choice of trusts to help with estate planning. You can also assign all or part of your bond to another adult. They then own
this part of the bond, can choose their own investments and pay tax at their own income tax rate on any
gains when they cash it in.
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| Risk &
Return |
Choose the right level of risk for you. The value of your bond and any income from it can go down as well
as up. This bond does not offer a capital guarantee.
If you take an income or capital withdrawals that exceed the growth of your bond, you will reduce its
value.
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Choose the right level of risk for you. The value of your bond and any income from it can go down as well
as up. This bond does not offer a capital guarantee.
If you take an income or capital withdrawals that exceed the growth of your bond, you will reduce its
value.
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* There may also be withholding tax payable on certain investment funds. This is a
tax that some countries deduct from dividends and interest payments to foreign investors. It is not possible
to reclaim withholding tax.
All of these options should be thought of as medium to long-term investments, typically held for at least
5 years. Their value can fall and rise over time and you may not get back the amount you originally
invested. Tax rules can change.
Laws and tax rules may change in the future. The information here is based on our understanding in September 2012. Your personal circumstances also have an impact on tax treatment.
