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The Old Mutual Wealth Collective Investment Bond (CIB)

Our Collective Investment Bond offers clients flexibility, simplicity and access to a wide range of funds and investment options. It offers access to over 1600 funds, and in addition, you can access our WealthSelect range of researched funds combined with our discretionary Managed Portfolio Service, or choose from our range of risk, income and growth targeted multi-asset solutions, for even greater investment choice.

Clients who hold multiple investments with our platform benefit from aggregation of these holdings for calculation of product/service charges; they may be able to reduce these fees/charges still further by taking advantage of client linking (view Q&As) and aggregating the value of investments held by their spouse/civil partner for this purpose.

Why invest in the Collective Investment Bond

  • No annual tax returns for individuals or trustees, since bonds are non-income producing.
  • Funds can be switched within the bond (currently at no charge), without giving rise to a Capital Gains Tax (CGT) or income tax liability and with no tax reporting requirements.
  • Switches in and out of funds are not subject to the CGT 30-day rule and so will not give rise to a taxable event.
  • Realised gains may benefit from top-slice relief which can reduce or remove any higher or additional rate tax liability.
  • Top-ups will benefit from top-slicing from inception (individuals only).
  • The bond can be assigned by way of a gift without giving rise to a tax charge, although there might be inheritance tax (IHT) considerations.
  • 5% tax deferred allowance of the original investment can be taken each year for 20 years without creating an immediate tax liability. This is cumulative if not used, so potentially a client could take 2.5% for 40 years.
  • For the purposes of age allowance, withdrawals within the 5% tax-deferred allowance are not treated as income.
  • Bonds can be gifted into trust and assigned out of trust without giving rise to an income tax or CGT charge.
  • Multiple lives assured can be used at outset to avoid a chargeable event on death of the applicant(s).
  • Single premium investment bonds are not normally included where means testing is applied by a local authority for residential care.
  • Extra life cover available.

Find out about the benefits of the Collective Investment Bond

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