Share

Collective Investment Bond

The Collective Investment Bond (CIB) is a flexible way of investing your money over the medium to long term. It allows you to put money into a range of different investments, including unit trusts and open-ended investment companies (OEICs). It’s designed to allow your investment to grow while you make regular, tax-efficient withdrawals if you need to. It can also be useful for inheritance tax planning

Unlike our stocks and shares ISA or our Collective Investment Account, which are straightforward investment products, the CIB is structured as a life insurance policy. This structure provides the potentially tax-efficient benefits – your adviser can explain these to you in more detail.

Our CIB is exclusively available through financial advisers. Here are some more details you need to be aware of.

  • Although structured as a life insurance policy for tax reasons, the CIB provides only a small amount of life cover, compared with our life insurance range.
  • To hold a CIB, you need to be aged 18 or over and resident in the UK.
  • You need to be able to invest a lump sum of at least £10,000.
  • There’s no set investment period but it’s considered a medium to long-term investment – that’s at least 5 years.
  • As with any investment product, the value of your CIB could go up or down. It could be worth less than you paid in.
  • Whether a CIB is right for you will depend on your personal circumstances so it’s best to discuss these with your financial adviser.

If you invest in an Old Mutual Wealth Collective Investment Bond, you will get access to our investment technology enabling you and your adviser to hold, monitor and manage your Bond - and any other fund-based investments you have with Old Mutual Wealth. So as your circumstances and goals change, you can change the investments held in your CIB accordingly.

The content of this site does not constitute investment advice and should not be construed as such.

This site is based on Old Mutual Wealth’s interpretation of the law and HM Revenue and Customs practice as at November 2016. We believe this interpretation is correct, but cannot guarantee it. Tax relief and the tax treatment of investment funds may change. The value of any tax relief will depend on the investor’s individual circumstances.

What next?