HSBC Life UK commits to supporting estate planning growth
HSBC Life (UK) Limited (“HSBC Life (UK)”) has shown its commitment to supporting the growing need for estate planning with the launch of new tools and resources for advisers. Its own research1 indicates that while many advisers believe a significant number of their clients would benefit from estate planning, nearly two out of five (38%) of clients have yet to take any action. Less than half (47%) have taken steps to reduce or plan for Inheritance Tax (IHT).
HMRC figures2 show £2.2 billion was paid in April to June this year which is £0.1 billion higher than the same period last year and for the 2025/26 tax year IHT receipts are projected to hit £9.1 billion3.
HSBC Life (UK) is committed to supporting advisers to further enhance estate planning advice with the launch of a dedicated section on its website and a comprehensive 45-page manual on estate planning. It covers issues including wills and estate planning, intestacy, an overview of IHT, lifetime trusts, life assurance, estate planning products and offers a range of tools and resources. Products which can support estate planning include onshore investment bonds. Using an onshore investment bond as a trust investment can deliver attractive tax deferment and tax management alongside the tax benefits the onshore bond wrapper already offers, HSBC Life (UK) says.
Mark Lambert, Head of Onshore Bond Distribution at HSBC Life (UK) Ltd, said: “Helping clients with estate planning is a vital component of the advice process and has been under more focus following the introduction of the Consumer Duty. Advisers are seeing increasing demand for support from clients and demand is likely to continue to grow in line with IHT receipts.2 We are focused on helping advisers to deliver good outcomes for clients and the new Estate Planning adviser resources and planning manual are part of that ongoing commitment.”
Advisers can download the Estate Planning Manual at https://www.life.hsbc.co.uk/estate-planning/
Onshore bonds offer zero tax on cash dividends at a policyholder level while non-dividend income is taxed at 20%. Capital gains realised within the Bond are subject to UK life fund taxation. This “fund level” taxation treatment of income and capital gains results in a full basic rate income tax credit being available to the investor when a chargeable event arises. This, in effect, means that the policyholder is treated as having already paid basic rate income tax on these gains. Top slicing relief and 5% p.a. tax deferred rules on withdrawals remain. Lifetime transfers by way of assignment without consideration are not taxable events.
The HSBC Life Onshore Investment Bond, a tax effective medium to long term lump sum investment wrapper, can be accessed with a minimum investment of £25,000 providing the potential for capital growth while still allowing policyholders to make withdrawals from their investment. It also offers access to around 3,800 funds via open architecture.
HSBC Life (UK) Limited does not replicate funds offered by external fund managers. It enables investment in the funds directly, ensuring that consistency of approach across the investment solutions that advisers recommend to their clients.
Notes to Editors: References
1. Research was conducted by Ad-Lucem with 300 advisers and 1,000 clients currently with advisers or who have seen an adviser in the past three years. The advisers were interviewed via telephone and represent 300 firms weighted to be geographically representative and representative in terms of AUA and number of RIs. Interviews on the fundamentals of financial planning were conducted before the Budget. Sentiment was then tested again post Budget, along with a detailed series of questions to gauge how the announcements materially affect financial advisers’ and their clients’ plans and priorities. Clients were interviewed online and have a minimum of £25,000 investable assets, are weighted to be geographically representative and are split by gender
3. .https://obr.uk/forecasts-in-depth/tax-by-tax-spend-by-spend/inheritance-tax/
Media enquiries to:
HSBC Life (UK) Limited
Ellis Ford ellis.ford@hsbc.com
Citigate Dewe Rogerson
Seb Zickus +44 (0)20 7025 6494 seb.zickus@citigatedewerogerson.com
About HSBC Life (UK) Limited
HSBC Life (UK) Limited is part of the HSBC Group, one of the world’s largest banking and financial services organisations. HSBC Group serve more than 40 million customers worldwide through a network that covers 64 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. We aim to be present where the growth is, enabling businesses to thrive and economies to prosper, and, ultimately, helping people to fulfil their hopes and realise their ambitions. HSBC Life (UK) Limited was founded in the UK in 1988 and offers insurance services to meet protection and investment management needs. Our services and solutions are available through HSBC banking channels and selected third parties, including financial advisers and aggregators. For more information on HSBC Life (UK) Limited range of services go to https://www.life.hsbc.co.uk/ and for more information on HSBC please go to https://www.hsbc.com
About HSBC Life
HSBC Life is the insurance business of the HSBC Group. We manufacture life and health insurance products in Hong Kong, mainland China, Singapore, India*, France, UK, Malta, Mexico, and Argentina. HSBC Life offers a range of insurance products to meet the protection, education, retirement, wealth growth and legacy planning needs of our customers. Our services and products are available through HSBC banking channels, selected third parties, including financial advisers and aggregators. *Through our joint venture, Canara HSBC OBC Life Insurance.
HSBC Holdings plc
HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 57 countries and territories. With assets of US$3,214bn at 30 June 2025, HSBC is one of the world’s largest banking and financial services organisations.