Premiere investment bonds and Premiere Europe

For all Premiere Accounts, all policy owners must live in the UK, Channel Islands or the Isle of Man. If the policy owner is a trust, a majority of the trustees must be live in the UK, Channel Islands or the Isle of Man.

Unlike policyholders, lives assured don’t necessarily need to live in the UK, Channel Island or Isle of Man. Please talk to your account manager to see whether your client’s country of residence is eligible.

We are unable to accept policy owners or lives assured who are US nationals/citizens.

The financial advice must have been given by a UK authorised and regulated adviser who has terms of business with us, and the application form must be signed in the UK, Channel Islands or Isle of Man.

For the Premiere Europe Account the Irish Revenue Commissioners have confirmed that discretionary fund management services are not chargeable to VAT under the Value Added Tax Consolidation Act 2010 provided that the assets being managed are classed as a pooled fund portfolio bond and not a highly personalised bond. 

For the Premiere Account, VAT is usually chargeable on discretionary fund management fees. The exact status of VAT depends on the service being provided and to who – you’ll need to make sure you’re satisfied with the final VAT position. 

Tax rules depend on individual circumstances and may change.

You can choose to set up your Premiere account investment bond 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 and the bond is closed.

Capital redemption

With this option there are no lives assured. Instead, the bond continues for a fixed term of 99 years and, at the end of the term, will pay the higher the value at the time or a guaranteed maturity value.

Both versions can be surrendered at any time.

The capital redemption option has a fixed term of 99 years and will pay out a guaranteed maturity value at the end of the term (unless it has been surrendered). There are two maturity value options:

• The maturity value is 130% of the initial premium, but if you choose this option you’ll only be able to invest in the CLI Sterling Money fund. If the full surrender value on the maturity date is more than 130% of the initial premium, we will pay the higher amount.
• The maturity value is 20% of the initial premium. If you choose this option, you can enjoy our full range of investment options. If the full surrender value on the maturity date is greater than 20% of the initial premium, we will pay the higher amount.

Yes, you can make regular payments into both accounts. You can make payments (repeat top-ups) of at least £2,500 monthly or yearly.