Prudential Onshore Portfolio Bond
The Prudential Onshore Portfolio Bond has the advantage of being able to access a wide choice of investment options with a range of assets classes available through a number of Investment Wrap Platforms.
- bullet Start your plan with a single payment and make additional payments at any time.
- bullet Extensive choice of investment options available.
- bullet Withdraw up to 5% per year of your investment free from any immediate tax liability.
- bullet Switch assets within the bond whenever you need to without charge. Access your money whenever you need to.
Risks and considerations
- bullet This product is only available through a financial adviser.
- bullet The value of your investment can go down as well as up and you may not get back the amount you put in.
- bullet Making withdrawals and/or the application of charges will reduce the value of your investment.
- bullet You can withdraw over 5% per year but anything over the 5% may incur a tax liability. This may also be the case if cash in your plan.
- bullet Tax relief will depend on your individual circumstances and is subject to change in the future.
The Prudential Onshore Portfolio Bond is an investment bond that allows access to a wide range of assets classes. It can only be taken out in conjunction with an Investment Wrap Platform. An Investment Wrap Platform is an administration service for your investments that could help simplify the management of your investment portfolio.
What is Onshore?
UK Investment Bonds are non-income producing investments and so have a different tax treatment from other UK based investments. This can provide valuable tax planning opportunities for individuals.
Being an onshore bond means that it is taxed under UK life policy taxation rules and so an appropriate level of tax is taken from within the bond itself. It is only available to UK residents aged 18 or over.
• You can start investing – with a minimum of £15,000 and make additional top-ups of at least £2,500.
• Ease of use – when taken out in conjunction with an Investment Wrap Platform you can manage your bond alongside all of your other platform assets. Most platforms provide an instant summary of the combined value of your asset holdings invested and trading activity carried out by your adviser.
• Flexible options for withdrawing your money – you can take regular or partial withdrawals from your bond at any time. You can set the amount of regular withdrawals and choose how often it is taken, within certain minimum and maximum levels.
• There’s also tax benefits – if you pay tax the Prudential Onshore Portfolio Bond has a valuable built-in tax benefit that allows you to take out up to 5% per year of your investment free from any immediate tax liability. Please note, the minimum withdrawal is £100.
• There is a wide range of investments to choose from - with an extensive choice of investment options with a range of asset classes such as Unit Trusts and Open Ended Investment Companies (OEIC Funds) available through your selected platform.
• Inheritance tax planning options – with a wide range of trust options available from us for use with the Prudential Onshore Portfolio Bond.
An important point to remember is that the value of your investment can go down as well as up and you may not get back the amount you put in.
When you take money out and when we take a charge this will reduce the value of your investment. If you take out more than 5% of the amount you first invested in any twelve month period, you might have to pay tax.
You can read our Investment Guides for more information on investing.
What you may get back from your investment
This will depend on many things such as the investment performance of your chosen assets, which can go down as well as up along with how long you have invested for. Other factors to take into account will be any withdrawals you make, additional features you choose, charges and any tax liability that may apply.
You can read more about this in the Key Features Document.
Before you decide whether this investment product is right for you, you should read the following documents and then speak to your financial adviser for further information.
Key Information Document
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.
• Key Features Document - this document provides you with product information if you are taking this bond out with an investment platform.
• Client Guide - this guide provides you with product information if you are not taking this bond out with an investment platform.
Are you an existing customer?
If you are an existing customer and looking to make changes to your investment, please speak with your financial adviser or call our Service Centre on 0800 000 000. Lines are open Monday to Friday between 8.30am and 6pm. We might record your call to make sure our service is up to standard.
A trust that pools together customers' money, allowing them to increase their investment options, therefore potentially reducing the risk. Unit trusts issue units, unlike OEICs which issue shares.
Unit trusts generally have two prices: a bid price at which you sell and an offer price at which you buy. The difference between the two is often referred to as a bid offer spread. Note: Prudential Unit Trusts have only one unit price.
Unit trusts are overseen by an independent body called the trustee.
An investment company where shares can be created or cancelled to match demand, in a way similar to the units of a unit trust. The principal difference lies in the fact that there is a 'single price' to which is added the initial charge for purchase.
We are not recommending one product option over another. We recommend you seek financial advice if you're unsure about what product could be right for you. The information above is based on our understanding of current taxation, legislation and HM Revenue & Customs practice, all of which is liable to change without notice. For more information please visit www.hmrc.gov.uk.