Onshore Bond

Aviva can offer a fully integrated, single premium Onshore Bond, alongside the Platform products you already use for your clients.

The Onshore Bond can provide a compelling option for tax-efficient investing and inheritance tax planning when used in conjunction with our wide range of trusts.

Wide investment range

Access to over 6,000 funds, the Smooth Managed Funds and a range of model portfolios

Integration

Fully integrated with the Aviva Platform for simplified reporting and price aggregation

Tax-efficiency

Offers tax-deferred growth and 5% withdrawals without immediate tax charges

Discover Onshore Bond Opportunities

Introducing the Flexible Reversionary Trust (FRT)

Built to work seamlessly with our Onshore Bond, the FRT helps clients in several ways. Watch to discover more.

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Transcript for video Transcript

We all want to protect what we leave behind—but without planning, inheritance tax can take more than you expect.

In the UK, only the first £325,000 of your estate is inheritance tax-free. Anything above that, could be taxed at 40%, leaving your family with a significant bill.

So, what can be done to make sure your family receives what you intended?

That’s where the Aviva Flexible Reversionary Trust comes in.

Designed to be used with the Aviva Onshore Bond, the trust helps you manage potential inheritance tax liabilities - while keeping flexible access to your money.

When you set up the trust, you outline a flexible schedule of payments to support your future. Because these payments are flexible, Trustees (the people you select to manage the trust), can delay or skip them based on your needs.

Placing an Onshore Bond into a Flexible Reversionary Trust is considered a gift, which starts a seven-year clock. After that, the bond sits outside your estate for inheritance tax purposes. Any growth is excluded from day one.

Here’s an example:

Meet Helen. She invests £150,000 into an Aviva Onshore Bond and places it into the Flexible Reversionary Trust, via her financial adviser.

Helen appoints independent trustees to manage the trust and selects her children to benefit from it.

The bond is split into 1,000 identical parts known as segments, which her adviser groups into blocks called policy funds.

Helen’s investment is split into 50 policy funds of £3,000 each. She wants the option to access five funds each year for ten years—giving her £15,000 annually. The value she receives may be higher or lower depending on how the investments perform, as their value can go up or down. This schedule is set at the outset of the trust.

In year one, Helen’s trustees decide to defer her entitlement to year 11 - she doesn’t need the money yet.

In year two, Helen’s trustees grant her the five policy funds she is entitled to and she uses these to pay for a dream Caribbean holiday.

In year three, Helen wants to use three funds to help her daughter, Lily, with university costs. Helen’s trustees give up three out of the five planned funds. As Helen’s policy funds have grown in value this provides £10,100 for her tuition and travel.

The trustees can either cash in the three funds—taxable to Helen—or assign them to Lily.

If assigned to Lily, who has no other income, there’s no further tax to pay. The other two funds are deferred until year 12.

In year four, Helen doesn’t need the money, but her son Nick plans to move his family closer to home in a couple of years’ time. Helen’s trustees move three funds to year six and give up the other two. Helen also gives up her entitlement in year 5.

By year six, Nick’s family is ready to move. Helen’s trustees use the five funds available, plus the three they moved forward, to help support Nick’s family move.

By year seven, Helen’s original gift is outside her estate for inheritance tax purposes. She’s supported her family and protected her legacy — all while having flexibility.

So, let’s recap the benefits of the Aviva Flexible Reversionary Trust:

· It helps reduce inheritance tax – After seven years, your gift falls outside your estate.

· Access your money when it suits you – take policy funds or defer them based on your needs.

· Choose who benefits – Together with your trustees you choose who benefits and when.

· Make tax-smart decisions – Assign funds to loved ones in a way that suits their tax situation.

· Avoid delays – Trustees can act quickly after your death, without waiting for probate.

· Trustees retain control until payments are due.

Speak to your financial adviser today to see if the Aviva Flexible Reversionary Trust could be right for you.

This product is designed for trusts established by a single individual. Potential tax benefits depend on current legislation and your individual circumstances, and may change in the future.

LF50611 12/2025

Find out how to set up the FRT here

Product details

Why Onshore Bond?

The Onshore Bond is a life assurance policy provided by Aviva Life & Pensions UK Limited. It is administered on the same technology as the Aviva Platform products and therefore benefits from many of the same features.

The Onshore Bond offers:

Access to over 6,000 funds with a range of assets, classes and sectors, including model portfolios and the Smooth Managed Funds
Simple, transparent charging structure with no early exit charges
Onshore Bond is initially made up of 1,000 individual and identical policies to help with tax planning
Access to 5% of initial investment each year for 20 years with no immediate tax liability
Range of trust options to help minimise inheritance tax liability
Choice of adviser-charging options
Additional investments of at least £1,000 at any time
Death Benefit of 101% of the value of the bond

The value of investments can go down as well as up, and investors may not get back what they put in.
Tax treatment depends on the individual circumstances of each client and tax rules may be subject to change in the future.

Facts and figures

Aviva Charge

The Aviva charge depends on the value of your client’s Onshore Bond.

The charge will be calculated based on the total amount invested in the Onshore Bond, including any transactional cash, plus any amount invested in any Aviva Platform products. Because of this, your client may receive a discount on the charge for their Onshore Bond.

Value	Aviva charge
Charge on everything up to £400,000	0.25%
Charge on anything above £400,000	0.15%

All funds have a fund management charge and there may also be a Fund Management Expense Charge (FMEC), see Investment Centre for details.

Discretionary Fund Managers will impose a fee for access to their model portfolio. This fee forms part of the 5% tax deferred allowance.

Onshore Bond limits	Minimum	Maximum
Initial investment	£10,000 Regular payments in are not facilitated.	No maximum, except for Smooth Managed Funds, where in most cases the maximum that can be invested into any Smooth Managed Fund is £1 million. If you want to invest more than this, please contact us.
Additional investment	£1,000	No maximum, except for Smooth Managed Funds, where in most cases the maximum that can be invested into any Smooth Managed Fund is £1 million. If you want to invest more than this, please contact us.
Regular withdrawal minimum	£25.00	You can withdraw up to 5% a year of the total amount invested with no immediate liability to extra income tax.
One off withdrawal minimum	£500	No maximum. You can withdraw up to 5% a year of the total amount invested with no immediate liability to extra income tax.
Account balance	£250.00	-
Balance for each fund	£50.00	-

Client suitability

Onshore Bond is designed for clients who:

Have a lump sum of at least £10,000 to invest
Have maximised their ISA allowance
Want access to over 6,000 funds, with a wide range of risk appetites, including model portfolios and the Smooth Managed Range
Want the flexibility to invest for growth, income or both
May want to take one-off withdrawals or set up a regular withdrawal
Understand there is a risk that they may get back less than they invested
May want to make additional investments into their policy

Adviser remuneration

Initial adviser charge

We deduct this from the initial investment before we set up the policy.

Single adviser charges

You can take a single charge from the Onshore Bond on an ad hoc basis.

Ongoing adviser charges

If you've agreed an ongoing charge with your client, we can take the charge from the Onshore Bond on your behalf, and pay it to you whenever it suits you and your client. Ongoing adviser charges form part of the 5% tax deferred allowance.

You have a range of options for how you set up an ongoing adviser charge:

Percentage of the Onshore Bond
Specified monetary amount
You can start the ongoing advice charge at a future date if you prefer
Paid weekly

Business support

The Onshore Bond is an insurance policy provided by Aviva Life & Pensions UK Limited. It has similar functionality to the Aviva Platform products and therefore benefits from many of the same features.

Get more from Onshore Bond

Our technology is designed to be easy and straightforward to use. And we’ve got a range of support in place to help you get the most out of it:

Regionally based wealth development managers providing face to face and telephone support. Our team consists of experienced consultants who have attained the high standard set by Aviva for account management
You can call a dedicated service and support team on 0800 056 4607 - lines are open Monday to Friday, 8.30am to 5.30pm
Download our guide on everything you need to know about due diligence
Step-by-step 'how to' guides
Online product literature and sales support from our product literature library
Demos to help you navigate, manage and transact business

Adopting Aviva technology for your business

Our support team are experts when it comes to demonstrating all of the tools at your disposal. We can support with any issues, big or small and offer one off or ongoing assistance, depending on what you need.

We offer:

a demonstration of how to use the Onshore Bond functionality
user guides so you can go at your own pace
access to reference material
an online document library with information on the Onshore Bond and all our other products
an investment centre with information on all our funds, including fund group profiles, performance data, portfolio functionality and income analysis

Get a free demonstration

Email DISTPAC@aviva.com

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Trusts & Onshore Bond

Using an Onshore Bond within a trust can be an effective financial planning strategy. Aviva offers seven trusts that can be used in conjunction with our Onshore Bond: