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Prudential Onshore Portfolio Bond
The Prudential Onshore Portfolio Bond combines the advantages of a wide choice of assets from a platform with the taxation and trust benefits of an onshore bond.
- Comprehensive investment choice
- Trust planning
- Inheritance Tax planning options
- Investment flexibility of a platform
- Tax benefits
Key documents
Key Information Document (KID)
If your client invests in this product they should read our Key Information Document, relevant ‘Investment Option Document(s)’ or Fund Manager's own Key Investor Information Document(s) as appropriate. Please note that if the fund manager is not Prudential, your client will need to source these documents from the fund manager directly. These include important information which may help them make up their mind.
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 policyholder tax liability.
- Easier to administer trust planning: Bonds can be transferred to trustees without triggering income tax charges.
- Ease of use: Integration with your client's chosen platform allowing them to manage their bond alongside other platform assets.
The impact of taxation (and any tax reliefs) depends on your client’s individual circumstances.
Please remember that the value of investments can go down as well as up, your client may not get back what they have paid in.
About the Prudential Onshore Portfolio Bond
The Prudential Onshore Portfolio Bond combines the advantage of a wide choice of assets from your client's chosen platform 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 fast facts 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 offers a choice of trust, your client can select which one better suits their circumstances. The Bond can also facilitate investment by existing trusts.
Choice of trust:
See the Prudential Trust and Application Form Tool for more information.
Investment information
Asset choice
All assets are held on the chosen platform.
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.
There is a wide range of fund and asset choice available, which your client can manage on their chosen platform. Typically, these include assets such as:
- Unit Trusts
- OEICs
- SICAVs (Societies d’Investissement a Capital Variable)*
- UCITS (Undertakings in Collective Investments in Transferable Securities)**
- ETFs/ETCs
* SICAVs are European Collective Investments similar to OEICs.
**UCITs is a generic term for funds that meet certain regulatory requirements and can be sold in any European Union country.
Discretionary Fund Managers
Your clients platform may offer access to a managed portfolio of assets.
These portfolios may be managed by a Discretionary Fund Manager (DFM), who on an ongoing basis, choose the investments within the managed portfolio.
For further details on how your client's Bond assets are managed download Prudential Onshore Portfolio Bond - fast facts (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 and costs
The main charges will be:
- Bond Charges
- Asset Charges and Costs
- 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
- Administration and Operation Charge
- 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 Prudential Onshore Portfolio Bond - fast facts (PDF).
Asset Charges and Costs
- Yearly total
- Initial Charge
The Yearly Total combines the Annual Management Charge and further costs deducted from an underlying Asset by the investment management organisation where that Asset is held in the form of units or shares in investment funds. The Initial Charge is applied to an underlying Asset which is held in the form of units or shares in investment funds, and where the Asset has different buying and selling prices.
For more information on charges, view our Prudential Onshore Portfolio Bond - fast facts (PDF) document.
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 facilitates a range of Ongoing and Ad hoc Adviser Charging options available through the platform. Prudential International Assurance plc, UK Branch can facilitate Set-up Adviser Charges.
For more information on Adviser Charging, download the Prudential Onshore Portfolio Bond - fast facts (PDF) document.
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.
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 2023
"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.