Features
| Product type | The Discounted Gift International Portfolio Bond is a single premium whole of life investment bond with no fixed term. It provides a tax efficient framework for investing in a wide choice of assets. The bond comprises a series of identical policies to give the Trustees greater choice as to how to take money from the bond and to potentially increase its tax efficiency. |
| Availability | Available to individuals aged 18 to 89 years inclusive. All donors and trustees must be UK residents. There can be single or joint donors (maximum two). Joint donors must be married or registered civil partners. If you become resident in Ireland your bond will become subject to tax in Ireland. The bond is not available if you are a citizen or resident of the United States of America. |
| Currency | The bond currency must be selected at the outset. It can be one of British Pound (GBP), Euro (EUR) or US Dollars (USD). |
| Lives assured age limits | Minimum number of lives: 2 Maximum age: No maximum age as long as at least one life is aged 89 or under and at least one life is likely to survive the (youngest) donor. Donors and their partners cannot be included in the lives assured. |
| Minimum investment | £75,000 / €112,500 / $150,000 initial investment. It is not possible to make additional investments. Minimum initial investment in each investment fund/deposit account is £2,500, or the minimum allowed by the investment manager/deposit account provider, whichever is the greater. |
| Maximum investment | No maximum |
| Method of payment | Payment can be made by verified cheque, CHAPS/telegraphic transfer or transfer of assets. Premiums in excess of £750,000 must be made via CHAPS/telegraphic transfer. |
| Number of policies | A choice of between 1 and 500 policies. 100 policies will be issued if the required number of policies is not specified. |
| Death benefit | 100.1% of the surrender value of the bond. |
| Investment availability | Investment is available into a wide and diverse range of assets. |
| Allowable Asset | Investment Criteria |
|---|---|
| Units in UK authorised unit trusts | As defined in Section 468 of the unit trusts UK Income and Corporation Taxes Act 1988. |
| UK investment trusts, excluding warrants | As defined in Section 842 of the unit trusts UK Income and Corporation Taxes Act 1988 |
| Interest in overseas collective investments | As defined in Section 235 of the collective investments UK Financial Services and Markets Act 2000 and be structured in one of the following ways: • an OEIC • a unit trust • an offshore distributor and/or non-distributor fund |
| Life assurance funds | Must be provided by Legal & General International |
| Cash and cash deposits | Must be held in the bond currency |
| Cash | May be held in other currencies for the purposes of dealing transactions, but should not be used as part of an investment strategy. |
| Transaction Account | Some of the assets contained within the bond will be in one or more transaction accounts. The main transaction account (in bond currency) will be used to make the majority of payments to and from the bond, including payment of charges and receipt of rebates from investment fund managers. In certain circumstances currency exchange rate charges may apply. |
| Investment variation | Assets can be varied at any time. Dealing charges may apply to some investment variations. |
| Regular withdrawal options | |
|---|---|
| Minimum regular withdrawal | The greater of: 1% each year of the initial investment into the bond; or £200 per month; or £600 per quarter; or £1,200 per half year; or £2,400 annually or equivalent in whichever currency the bond is held. |
| Maximum regular withdrawal | 10% each year of the initial investment into the bond. |
| Other withdrawals | |
|---|---|
| Non regular withdrawals | Full or partial withdrawals from the bond can be made under certain conditions. A surrender charge may be deducted depending upon the charging structure selected. |
Full product details (PDF) can be downloaded here.
For a full list of the charges that may apply to a bond please refer to the Customer Charges Guide.
