Wrap bonds overview

There are two bonds available on the Wrap platform – the Onshore bond and the International Portfolio Bond for Wrap (also known as the Offshore bond). You can only buy a Wrap bond through a financial adviser. If you don’t already hold a bond on the Wrap platform, you will need to appoint a financial adviser to your Wrap account to open one on the platform.

Bonds are medium to long term investments so should usually be held for at least five years. Onshore and offshore bonds have different rules and limits that apply. Read below for more information about the Wrap bonds.

International Portfolio Bond for Wrap features

Please note that if you hold an Offshore bond on the Wrap platform but don't have an adviser linked to your account, due to the level of risk involved with this type of investment, you won't be able to change your fund selection or make any new payments into the bond. You are able to take withdrawals or fully encash the bond. As making withdrawals may have some tax implications for you, you should obtain tax advice before making such a decision.

  • The International Portfolio Bond for Wrap is an offshore investment linked life insurance product made up of a number of individual policies. The bond is provided by Standard Life International dac, a part of the Phoenix group and is administered in Ireland
  • The minimum initial investment into the Wrap Offshore bond is £20,000 and the minimum lump sum payment you can make after the bond has been initiated is £2,500.
  • The Wrap Offshore bond holds its own cash account and platform charges for the bond are deducted from this account.
  • Regular payments into the Offshore bond are allowed, these are referred to as recurrent single payments. These payments can be made monthly, quarterly, semi-annually, or annually.
  • Withdrawals from the Offshore bond are allowed, the minimum you can take as a one-off withdrawal is £500. If you are taking regular withdrawals, the minimum amount you can take is £200 monthly, and no more than 10% of the original bond value, minus any one-off withdrawals made during the year.
  • Through the Wrap you have access to thousands of mutual and insured funds so you can tailor your investments to meet your goals.
  • In order to keep your Offshore bond open, you will need a total value of £2,500. Once the bond drops below this threshold, the assets may be sold and the bond closed, with the proceeds being returned you. If you are taking a single withdrawal which will take you below the minimum required to keep the bond open, you will either need to reduce the value of your withdrawal or fully encash the bond.
  • For more information on charges and interest rates, please see our Wrap platform charges and interest rates page.
  • There are tax implications for withdrawing cash from your bond. Please see below for more information.
  • For more information, read our Key Features document.

Wrap Onshore bond features

  • The Onshore Bond for Wrap is provided by Standard Life Assurance Limited, part of the Phoenix group.
  • The minimum initial investment into the bond is £5,000. You can invest further lump sums of a minimum of £1,000.
  • There is no cash account within the Onshore bond, so platform charges for this product are paid from Wrap Cash.
  • The Wrap Onshore bond does not allow for regular payments in.
  • You can hold up to £1 million in your Onshore bond.
  • You can take a monthly withdrawal from your Onshore bond. The minimum regular withdrawal amount is £50 and cannot exceed 10% of the original value, minus any one-off withdrawals made during the year. The minimum amount you can take as a single withdrawal is £125.
  • In order to keep your Onshore bond open, you will need a value of either £500 per fund within the bond, or a total value of £2,500. Once the bond drops below this threshold, we may sell the assets, close the bond, and return the proceeds to you. If you are taking a single withdrawal which will take you below the minimum required to keep the bond open, you will either need to reduce the value of your withdrawal or fully encash the bond.
  • For more information on charges and interest rates, please see our Wrap platform charges and interest rates page.
  • There are tax implications for withdrawing cash from your bond. Please see below for more information.
  • For more information, read our Key Features document.

Tax information

  • You can take tax-deferred withdrawals each year of up to 5% of the total payments into your bond, up to a maximum of 100% of the total amount paid into the bond.
  • If you do not use your allowance in a particular policy year, you can carry it forward to a future year.
  • If you take a one-off or regular withdrawals that exceed your allowance, the excess may be treated as a chargeable gain and liable for income tax.
  • For more information about tax implications on your Onshore or Offshore bond, please see our Onshore bond Key features document or Offshore bond Key Features document. If you have questions about the taxes on your bond or require a calculation, please speak to your financial adviser or accountant.