The Prudential International Investment Portfolio can be written as the following trusts if your client requires Inheritance Tax planning options.
* Absolute and Discretionary.
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Prudential International Investment Bond
The Prudential International Investment Bond has the potential for good returns whilst minimising any tax liability.
- Tax advantages of a Dublin-based bond
- Choice of currency options
- Wide choice of risk-based funds
- Inheritance Tax planning options
- Full, partial and regular withdrawals
Key documents
Key Information Documents (KIDs)
See Key Information Documents below.
Features and benefits
- Tax advantages: Your clients investment could grow largely free of tax (other than withholding tax).
- Wide investment choice: Including the PruFund range of funds.
- Withdrawals: Your client can take full, partial or regular withdrawals.
- Guarantee options: Allowing your clients to pick a term to suit their circumstances. The PruFund Protected Funds are currently unavailable to new investments.
- Annual Investment Reward: A bonus added from the first anniversary of the bond, creating extra value for investments of £50,000/ €62,500 /US$75,000 or more.
- Choice of currency options: Including for making the initial investment, for the investment funds and for withdrawals.
- Inheritance Tax planning options: A wide range of trust options available for use with the Prudential International products
The impact of taxation (and any tax reliefs) depends on your client’s individual circumstances. Tax rules can also change in the future.
Please remember that the value of your client's investment can go down as well as up and they may not get back what they paid in.
About the Prudential International Investment Bond
The Prudential International Investment Bond offers access to a wide range of unit-linked investment funds with the aim of increasing the value of the money your clients invest over the medium to long term (5-10 years).
The Prudential International Investment Bond is available as either:
- A Life Assured option - a whole of life contract written on a single, joint life first death or joint life last survivor basis , or
- A Capital Redemption option (CRO) – a non-life assured contract with a fixed term of 99 years.
Your clients need to pay a single premium of at least £20,000, €25,000 or US$35,000 when they take out their bond.
For the Life Assured option, there is no set investment term of the bond. Both versions of the bond are set up as a group of identical policies, normally 20, available up to 100. Your clients can choose to cash in each policy separately, helping them withdraw money in a tax efficient way.
For more detail on the Life Assured option, download our Key Features document (PDF)
For the Capital Redemption option, the bond has a fixed term of 99 years, although it can be encashed at any time. If it is continued for the full term, it will pay a guaranteed minimum amount at maturity. This option can be particularly attractive for trusts, allowing the trustees to choose when to cash it in or instead to keep it going through successive generations.
For more detail on the Capital Redemption option, download our Key Features (Capital Redemption Option (PDF)
Trusts
Eligibility
The owner of the bond must be at least 18 years old at entry. The bond is available to individuals, trustees and corporate Investors and there is a maximum of 10 lives assured.
Life Assured option
Single life basis - minimum age at entry is three months attained and maximum age is 89 years.
Joint life first death basis - lives assured must be between three months and 89 years when the bond is taken out.
Joint life last survivor basis - minimum age at entry is three months attained and at least one life assured must be less than 90 when the bond is taken out.
Contributions
Initial premium: £20,000, Euro €25,000 or US$35,000 after any set-up charges.
Additional premium (top-ups): £15,000, Euro €20,000 or US$25,000. Please note top-ups are not allowed into a PruFund Protected fund.
The maximum total investment across the PruFund Range of Funds is £1,000,000, €1,500,000 or US$1,500,000.
There is no maximum for the other funds but if your client wishes to invest more than £1,000,000 you should contact us first.
Withdrawals
Clients can:
- Cash in the bond at any time
- Take regular withdrawals - monthly, quarterly, six-monthly or annually
- Take a one-off withdrawal as a specific amount
- Withdraw up to 5% per year free from any immediate Income Tax liability
There are limits to how much your client can withdraw and how much must be left in the bond following a withdrawal. There are restrictions on when money can be moved out of the PruFund range of funds.
Learn more about withdrawals for the Prudential International Investment Bond in our Key Features document(PDF)
Annual Investment Reward
The Prudential International Investment Bond offers an Annual Investment Reward for larger premiums (over £50,000, €62,500 or US$75,000). The premium is the amount invested into your clients bond, after any Set-up Adviser Charge has been paid. The reward is credited each year, on the anniversary of the investment.
Learn more about the Annual Investment Reward feature in our Fast Facts document (PDF).
Tax advantages
Thanks to Prudential International's location in Dublin, the underlying funds are subject only to withholding tax. As a result, investments have the potential to grow faster than in an onshore bond.
Learn more about tax advantages with the Prudential International Investment Bond in our Key Features document (PDF).
Currency choices
Your clients can invest and take withdrawals in any of 6 different currencies, including UK Pounds Sterling, US Dollars and Euros. This gives your clients an opportunity to match investments to their circumstances.
Investment information
Fund options
There is a wide range of investments for your clients to choose from with access to Prudential’s multi-asset fund range, including our unique investment funds, the PruFund range of funds as well as our Risk Managed Active and Risk Managed Passive funds. Your client can choose up to 10 at a time to suit their needs and preferences.
Investment options include:
- PruFund Range of Funds available in a choice of Sterling, Euro and US Dollar denomination.
- Access to five Risk Managed Active and two Risk Managed Passive funds with different levels of risk and potential return.
- A range of other unit-linked funds.
Download the fund guide (PDF) for more information on investment options.
Expected Growth Rates
We announce the Expected Growth Rates that apply to the PruFund Range of Funds every quarter.
View the Expected Growth Rates, Historic Expected Growth Rates or Unit Price Adjustments for the PruFund Range of Funds.
PruFund guarantees
The PruFund Protected Funds are currently unavailable to new investments.
The PruFund Protected Funds include a range of guarantee options for an additional charge. We offer guarantee terms on both our Cautious and Growth funds through the Prudential International Investment Bond.
Charges and costs
Applicable charges include:
- Annual Management Charge
- Fund switching charges
- Charges for guarantees (if taken)
- 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.
Annual Management Charge
All of the funds have an Annual Management Charge (AMC). In addition to our charges, there may be further costs incurred, which can vary over time. Where these are applicable, they are paid for by the relevant fund and will impact on its overall performance.
The Annual Management Charges and the current expected level of these further costs are set out in the current "Statement of Charges" for this product but they may vary over time.
Switch charges
Your clients can switch money between funds without charge up to 20 times in any 12 month period, after that we’ll apply a charge.
For more details of these charges, refer to the Key Features document (PDF).
Guarantee charges
The PruFund Protected Funds are currently unavailable to new investments.
The PruFund Protected Funds have an additional annual charge for the guarantee. We take this charge monthly in arrears by cancelling units.
Adviser Charges
The level and shape of Adviser Charging is agreed between the Adviser and their client.
There are three main charges:
- Set-up Adviser Charge: deducted from the initial investment before it is invested in the bond.
- Ongoing Adviser Charge: regular deductions which will count towards any maximum limit for withdrawals from the Bond.
- Ad hoc Adviser Charge: can be used to meet one-off charges.
Further details on Adviser Charging can be found in our Fast Facts Adviser Guide (PDF).
Additional information
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 die. This will depend on whether the bond is written on a single, joint life first death or joint life last survivor basis.
The life cover will end if the bond is cashed in.
For more information, please see our Key Features document (PDF).
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"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.