Prudential Onshore Portfolio Bond - OWC

The Prudential Onshore Portfolio Bond - OWC combines the advantages of a wide choice of assets with the taxation and trust benefits of an onshore bond.

Comprehensive investment choice

Inheritance Tax planning options

Tax benefits of a bond

Product details

Next steps

Key documents

Key Information Document (KID)

If you invest in this product you should read our Key Information Document, relevant ‘Investment Option Document(s)’ or Fund Managers own Key Investor Information Document(s) as appropriate. Please note that if the fund manager is not Prudential, you will need to source these documents from the fund manager directly. These include important information which may help you make up your mind.

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Prudential Onshore Portfolio Bond – OWC suitability report

MiFID II disclosure

As part of the Markets in Financial Instruments II Directive (MiFID II) we have provided disclosure documents related to this products.

View MiFID II documents

Features and benefits

Diversity and choice: A choice of investment options, with a range of asset classes.

Inheritance Tax planning options: A wide range of trust options available for use with the Prudential Onshore Bond.

Tax-efficient regular payments: Fixed regular payments without any immediate tax liability.

No tax liability on switching funds: Straightforward switching of funds which will not create a tax liability.

Easier to administer trust planning: Bonds can be transferred to trustees without triggering Income Tax charges.

Please remember that the value of investments can go down as well as up, and your client may not get back what they have paid in.

About the Prudential Onshore Portfolio Bond – OWC

The Prudence Onshore Portfolio Bond - OWC (Off Wrap Contract) combines the advantage of a wide choice of assets with the taxation and trust benefits of an onshore bond.

With access to a wide range of investment choices, the Bond aims to increase the value of your client's investment over the medium to long-term (at least 5-10 years).

It’s a single premium, whole of life insurance product, allowing your client to start their Bond with a single payment of £15,000. The minimum top-up payment is £2,500. Both limits are before the deduction of any Set-up Adviser Charge, if applicable.

The Bond has no investment term and no exit charge if your clients decide to cash it in.

Download the Key Features Document (PDF) for more information.

The Cash Account

This is where any cash balances are held in the Bond. The cash account is used to buy assets for the Bond, receive cash income from assets, meet Bond charges, any regular or one-off withdrawals and Adviser Charges.

For more information on the Cash Account see our Key Features Document (PDF).

Eligibility

Any owner must be at least 18 years of age and UK resident.

The maximum number of owners is 10.

The maximum age for ownership for life assured business is under 90.

Up to 10 lives assured can be covered. The Bond is available on a single life, joint life first death or last survivor basis.

The maximum age at entry for single and joint life cases is under age 90. On a joint life last death basis at least one life must be under age 90.

Insurable interest must exist between the owner(s) and the lives assured.

Prohibited countries list

Contributions

Minimum initial investment: £15,000 (before the deduction of any set-up adviser charges)

Minimum top-up investment: £2,500

No maximum applies although premiums in excess of £10 million will require additional due diligence.

Withdrawals

Clients can:

Cash in the Bond at any time

Take regular withdrawals every month, two months, three months, four months, six months or annually

Take a one-off withdrawal as a specific amount

See the Key Features Document (PDF) for more information.

Trusts

The Prudential Onshore Portfolio Bond - OWC offers a choice of trust:

See the Prudential Trust and Application Form Tool for more information.

Investment information

Asset choice

The premium will initially be invested in the Cash Account in the Bond which the Adviser, client or Discretionary Fund Manager can reallocate to purchase the chosen Assets.

Discretionary Fund Managers

A Discretionary Fund Manager (DFM) is appointed by Prudential International, UK Branch, as selected by the policyholder(s).

Any DFM fees incurred by Prudential International, UK Branch in relation to a Bond are deducted as part of the Bond charges and so will not count towards the 5% tax deferred allowance.

For further details on how your client's Bond assets are managed see the Key Features Document (PDF).

Fund switching

Switching funds is a straightforward process:

There are no restrictions in the number of assets that can be held at any time*.

There are no restrictions on the frequency of trading*.

* This will depend on the terms agreed between the platform and the fund manager. In addition the platform may set a minimum holding in a particular fund.

Charges

The main charges will be:

Bond Charges
Asset Charges
Adviser Charges

For more information on the standard charges & costs deducted and where you can go to get further information please refer to the Product Charges.

Bond charges

The following charges can be taken from the bond:

Ongoing Product Charge
Dealing Charges
Discretionary Fund Manager Charge
Expenses (dealing costs, taxes, duties, levies)

Bond charges are reviewed annually. From time to time, we may introduce new charges as a result of a levy or a charge imposed on the company. For more information on charges, download the Key Features Document (PDF).

Asset charges

Ongoing Charges
Initial Charge

Asset Charges are reviewed annually. For more information on charges, view our Key Features Document (PDF).

Adviser Charges

There are three main types of Adviser Charging.

Set-up Adviser Charge: deducted from the initial payment before it is invested in the plan.

Ongoing Adviser Charge: taken at plan level, will apply across all in-force segments.

Ad hoc Adviser Charge: after the initial plan is set-up, the client can request an Ad hoc payment to be made to the Adviser. Will apply across all in-force segments.

Ongoing and Ad-hoc Adviser Charges are treated as withdrawals from the Bond and will count against the 5% tax-deferred allowance.

The Prudential Onshore Portfolio Bond - OWC facilitates a range of Ongoing and Ad hoc Adviser Charging options. Prudential International Assurance plc, UK Branch can facilitate Set-up Adviser Charges.

For more information on Adviser Charging, download the Key Features Document (PDF).

Additional information

A summary of tax liabilities

Investment bonds offered by Prudential International are normally affected as single assurance life policies and have different tax treatments from other types of investments.

Our Adviser Guide (PDF) to tax on your clients investment bond provides more detail.

Life cover

The plan comes with a small amount of life cover and will pay out a lump sum when the person, or people, covered dies. The Bond can be written on a single life, joint life first death or a joint life last death basis.

"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at 5 Central Way, Kildean Business Park, Stirling, FK8 1FT. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company Limited. The Prudential Assurance Company Limited and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc which is a holding company registered in England and Wales with registered number 11444019 and registered office at 10 Fenchurch Avenue, London EC3M 5AG, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.