The HSBC Life Onshore Investment Bond provides investors with a number of 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 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 held 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 held 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.