Standard Life said it has re-entered the onshore investment bond market with the relaunch of its “Tailored Investment Bond” — adding a range of fully modernised features “that meet the evolving tax planning needs of advisers and clients.”
Standard Life said recent UK Budgets have posed new challenges for advisers and clients, reinvigorating interest in onshore bonds, as they “look for smarter ways to tackle” the changing Capital Gains Tax (CGT) and Inheritance Tax (IHT) landscape, and address emerging tax issues surrounding their clients’ affairs.
“Providing tax deferred growth and not being subject to CGT while the bond is held, combined with the ability to place the bond in trust or to assign it and potentially avoid IHT charges, have become increasingly attractive features of the Tailored Investment Bond,” said Standard Life.
“In the presence of tax efficient features, Standard Life research found advisers estimate around 40% of clients require a review of their existing plans with pensions being brought into scope of IHT from April 2027.
“Trusts and onshore and offshore bonds are the top non-pension products advisers expect to grow in popularity post the IHT rule change*.
“The Standard Life Tailored Investment Bond, a tax efficient onshore bond, offers broad investment choice, including new external multi‑asset funds, and flexible access to withdrawals. It also provides strong wealth protection and estate‑planning capability, with fully digital online servicing to support advisers and clients.”
Standard Life said it has expanded the bond’s investment range with the addition of several external multi-asset funds from HSBC & Vanguard, CT Threadneedle and L&G & BNY Mellon.
“This broadens its appeal to advisers and clients looking to manage volatility as demand for investment bond solutions increases, driven by the changing regulatory environment,” said Standard Life.
“The bond also gives investors access to a wide range of asset classes comprising equities, managed funds, property, and money market instruments.
“The minimum investment required is £15K and top-ups start from £2.5K, and regular withdrawals are available up to 10% of the original investment each year, with the first 5% being 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.
“The ability to place the Bond in Trust adds further appeal to advisers by supporting estate planning and wealth transfer strategies as clients increasingly look to preserve and pass on wealth.”
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.”