Firstly speak to your financial adviser

To make changes to an HSBC Life Onshore Investment Bond taken out by an individual or a limited company, you should first seek advice from your financial adviser. If you need to find a financial adviser, then you might find this Money Helper link helpful.

For Bonds taken out by individuals

Making withdrawals

You could choose to supplement your income by taking regular withdrawals from the HSBC Life Onshore Investment Bond. 

The tax treatment for individuals holding collective investments within an investment bond is different to holding them directly.

By planning ahead, you may be able to take advantage of opportunities to minimise tax liability when you take proceeds from your bond.

You should seek advice from your financial adviser.

Making additional investments

The HSBC Life Onshore Investment Bond has the flexibility for you to add amounts from as little as £500. Topping up your investment at any time means you can manage all your investments in one bond. 

You should seek advice from your financial adviser.

Switching Funds

You may become concerned about how some of the funds in your HSBC Life Onshore Investment Bond are performing, or more generally about fluctuations in the Stock Market, for example. 

You should seek advice from your financial adviser.

Closing your HSBC Life Onshore Investment Bond

You can surrender part or all of your HSBC Life Onshore Investment Bond at any time – but before doing so speak to your financial adviser as there may be tax considerations.

Death of a Bondholder

If the HSBC Life Onshore Investment Bond has one owner who is the life assured then it will form part of their estate when they die. Probate will need to be obtained with the executors becoming the new policyholders. Unless, of course, the bond was held in trust.  

If there are multiple lives assured and multiple owners then the bond will continue until the final surviving Life assured dies. This will trigger payment of the death benefit and the value of the bond will be paid to the owner(s) of the bond at that time. 

You should seek advice from your financial adviser.

Trusts and estate planning

Placing the HSBC Life Onshore Investment Bond in trust is a useful way to ensure the proceeds go directly to your beneficiaries when you die, and are therefore not considered part of your estate and liable to Inheritance Tax. HSBC offer a range of trusts to suit a variety of needs.

Trust Guide

Trusts can be complicated, so you may need the help of a professional. 

You should seek advice from your financial adviser.

Important information 

• The HSBC Life Onshore Investment Bond is not designed for non-taxpayers, non-UK residents and short-term (less than 5 years) investors.  
• The value of investments can fall as well as rise and clients 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 held responsible for the investment performance of its bond. The value of any tax benefits described depends on your individual circumstances. Tax rules and rates may change in the future. HSBC Life (UK) Limited cannot be held responsible for any future changes in legislation. 
• If you’re thinking of making changes to your bond you should first speak to your financial adviser as they may be able to advise you on the best options available – based on your needs and circumstances.

For Bonds taken out by limited companies

Making withdrawals

A limited company could choose to take part withdrawals from the HSBC Life Onshore Investment Bond. 

The tax treatment for limited companies is subject to special corporation tax rules.  

You should seek advice from your financial adviser.

Switching Funds

The directors of a limited company may become concerned about how some of the funds in your HSBC Life Onshore Investment Bond are performing, or more generally about fluctuations in the Stock Market, for example.  Each instruction will be treated as separate ‘sell’ and ‘buy’ transactions, undertaken through your cash account. This means that you will be uninvested for a time if the ‘sell’ instruction needs to be processed and the proceeds credited to your cash account before the ‘buy’ instruction can be made

You should seek advice from your financial adviser.

Closing your HSBC Life Onshore Investment Bond for limited companies

A limited company can surrender part or all of the HSBC Life Onshore Investment Bond at any time – but before doing so speak to your financial adviser as there may be tax considerations.

Death of a life assured

If there are multiple lives assured  then the bond will continue until the final surviving Life assured dies. This will trigger payment of the death benefit and the value of the bond will be paid to the limited company. You should seek advice from your financial adviser

Important information 

• The HSBC Life Onshore Investment Bond is not designed for limited companies which are not UK tax residents.
• The value of investments can fall as well as rise and you may not get back what you 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 held responsible for the investment performance of its bond. The value of any tax benefits described depends on your individual circumstances. Tax rules and rates may change in the future. HSBC Life (UK) Limited cannot be held responsible for any future changes in legislation. 
• If you’re thinking of making changes to your bond you should first speak to your financial adviser as they may be able to advise you on the best options available – based on your needs and circumstances.