Eligibility
To get a Premiere Account, you must be aged between 18 and 89, have at least £50,000 to invest and be resident in the UK, Isle of Man or Channel Islands at the point of commencement.
A life assurance or capital redemption bond?
You can choose to set up your Premiere Account on a life assurance or capital redemption basis.
Life assurance
With this type of bond, you can choose to insure the lives of up to six people. The death benefit is paid on the death of the last life assured, unless you choose to close it sooner.
Capital redemption
With this option, there are no lives assured. Instead, the bond continues for a fixed term of 99 years, unless you choose to close it sooner.
Structure
Our Premiere accounts can be opened in your sole name or as a joint account. The bond is divided into up to 99,999 separate identical policies – giving you greater flexibility on how you withdraw your money.
You can choose to either cash in all the individual policies or withdraw a small amount from each. Both options have different tax implications, so it’s important to speak to an adviser about which one is right for you.
Our Premiere or Premiere Europe Account?
Both accounts are International bonds, offering a tax-efficient way to invest. Our Premiere Account is provided by Canada Life International Ltd, which is based in the Isle of Man. Our Premiere Europe Account is provided by Canada Life Assurance International (Ireland) DAC, which is based in Ireland.
How are they different?
Both Premiere Accounts offer the same key features and benefits. The main difference is VAT for discretionary fund management.
Both accounts have different methods of applying VAT for discretionary fund management services. With the Premiere Account, VAT is applied to the discretionary fund manager’s charges. With the Premiere Europe Account, there’s no VAT to pay on a discretionary fund manager’s charges.
Tax rules depend on individual circumstances and may change. Speak to an adviser, if you need more information on tax.
Withdrawing money
All withdrawals are free of charge.
Regular withdrawals
You can set up regular withdrawals every month, quarter, half-yearly or yearly. The minimum amount you can withdraw is £50. There’s no maximum amount as long as you keep £5,000 invested.
One-off withdrawals
You can cash in (surrender) part of your investment at any time. The minimum amount you can withdraw is £200. There’s no maximum amount, as long as you keep £5,000 invested.
5% tax-deferred withdrawal allowance
If you pay tax in the UK, you can withdraw up to 5% of your original investment each year without incurring any immediate tax liability on it. Payments made to your adviser may be included in this allowance.
If you don’t withdraw the full 5%, the remaining allowance can be carried over into the next year. You can do this until you’ve withdrawn 100% of your original investment.
Cashing in
You can cash in your investment in full, at any time. Although you should always speak to an adviser to discuss any tax implications.
Tax
Investment growth
Growth on your investment is tax efficient, however, tax rules depend on the type of investment and may change.
It’s important to remember that the value of your investment can go down as well as up and you may get back less than you invest. The way funds have performed in the past is no guide to future performance.
Inheritance tax
If your bond isn’t in a trust, there may be inheritance tax to pay when you die. By placing your investment in a trust, there may be less inheritance tax to pay, or none at all.
Tax rules depend on individual circumstances and may change. Speak to an adviser, if you need more information on tax.
Explore our trusts and see how they could help you pass on your wealth in a tax-efficient way.
Tax rules depend on individual circumstances and may change. Speak to an adviser, if you need more information on tax.
Our trust options
You can use a trust with your Premiere Account investment bond. This could reduce the amount of inheritance tax that needs to be paid when you die.
Both of our Premiere Accounts can be used with the following trusts:
- Discounted Gift Trust
- Gift and Loan Trust
- Gift Trust
- Probate Trust
- Excluded Property Trust
Trusts explained. Find out more about the types of trust we offer and how they could help you pass on your wealth in a tax-efficient way.
