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HSBC Life Onshore Investment Bond taken out by limited companies

HSBC Life Onshore Investment Bond taken out by limited companies

Features and benefits

  • Manage Capital – The HSBC Life Onshore Investment Bond can be taken out by any UK tax resident limited company. The Bond offers a means of investing a lump sum for the potential of capital growth over the medium to long term.

    General tax planning – depending on the accounting standard adopted, the Bond may be used for general company tax planning.

    Tax treatment – Special Corporation Tax rules apply to the HSBC Life Onshore Investment Bond when held by a limited company. This means that, subject to the accounting standard used by the company, a Corporation Tax deferral on the growth could arise. Corporation Tax would be payable on the full surrender or on a part withdrawal from the Bond.

    Investment choice – the Bond offers access to an open architecture of over 3,800 investment funds.
    Low minimum investment – Initial investment starting from £25,000. The minimum for additional investments is just £500.

    Multi-life facility – unless the Bond is cashed in, it will continue until the death of the last surviving life assured.

    Transparency – all transactions are undertaken through a cash account which is divided equally across all the policies in the Bond. Payments are separately itemised and documented on your client’s half yearly statements, so they have a clear picture of the charges and deductions which apply.

  • The Three I’s of Investable Capital ReportrnInvestment for capital growth, Investment for income, Investment for intergenerational transfer.rn

How limited companies can access the HSBC Life Onshore Investment Bond

Limited companies can apply for the HSBC Life Onshore Investment Bond via a financial adviser, using a bespoke paper application form.

Please access the Application Forms and Form Guidance via the HSBC Life Extranet.

Important information

  • The HSBC Life Onshore Investment Bond is not designed for limited companies which are not UK tax residents
  • The suitability of the Bond for a limited company will depend on the accounting basis adopted by the company
  • The value of investments can fall as well as rise and your client may not get back what they invested – for some investments this can also happen as a result of exchange rate fluctuations as shares and funds may have an exposure to overseas markets
  • HSBC Life (UK) Limited cannot be help responsible for the investment performance of its Bond
  • The value of any tax benefits described depends on your client’s individual circumstances
  • Tax rules and rates may change in the future and HSBC Life (UK) Limited cannot be help responsible for any future changes in legislation
  • The minimum investment by a limited company into the HSBC Life Onshore Investment Bond is £25,000
  • A minimum amount of cash should remain in the Bond’s cash account at all times, to cover fees and charges
  • Investments should be seen as medium to long-term (at least five years), as cashing in early could mean your client gets back less than was originally invested
  • The Bond will be divided into a number of separate, identical policies
  • The company chooses the number of policies to hold, subject to a maximum of 1,200 policies with at least £1,000 in each
  • Withdrawals are subject to a minimum £100 per payment, and maximum 10% yearly of the initial investment
  • With a partial surrender, the remaining Bond must have an investment value of at least £2,000
  • Fund managers may impose minimum trade sizes limiting the number of funds to select

You can access the Application Form and Application Form Guidance via the HSBC Life Extranet.

Frequently Asked Questions

Documents

The following documents are available: