New research reveals that advisers are boosting the use of onshore investment bonds amid mounting tax pressures, reshaping long-term client strategies beyond traditional tax efficiency.
Advisers are stepping up their use of onshore investment bonds as rising tax pressure reshapes client planning, according to new research from Chesnara Life UK.
The insurer’s Onshore Bond Adviser Sentiment Survey found that 43% of advisers have increased their use of the products in response to higher taxes on investments. Cuts to the capital gains tax allowance and the freeze on that exemption until April 2031 were cited by 36% of respondents as a key driver, while 35% pointed to inheritance tax and estate planning.
The survey suggests the appeal is broadening beyond straightforward tax efficiency. Chesnara Life said 32% of advisers are using onshore bonds to improve the tax effectiveness of wider financial plans, 31% are deploying them more often in intergenerational planning, and 30% highlighted concern about unused defined contribution pension funds being brought into estates from April 2027.
Chesnara Life’s separate release on the issue said more than a quarter of clients are already adjusting estate plans ahead of that change, which is due to alter the treatment of unused DC pension savings on death. The company argues that the coming reforms are prompting advisers to look again at inheritance and succession strategies.
Mark Lambert, head of onshore bond distribution at Chesnara Life UK, said the product’s tax treatment has stayed unchanged even as dividend and CGT allowances have been reduced. He added that the approaching changes to the inheritance tax status of unused DC pension funds are increasing client concern, and that the bond’s stability has made it more attractive as part of tax-efficient financial planning.
The findings suggest a market in which advisers are increasingly treating onshore bonds not as a niche wrapper, but as a practical tool for long-term planning, particularly where estate transfer, tax deferral and income management intersect. Chesnara Life’s own materials also position the bond as suitable for limited companies and trust structures, although the company says it is not appropriate for short-term investors or for non-UK taxpayers and non-UK residents.
- https://investment-international.com/News/advisers-ramping-up-usage-of-onshore-investment-bonds-chesnara-life-research-shows/ – Please view link – unable to able to access data
- https://www.chesnaralife.co.uk/media-centre/media-release-defined-contribution-pension-estates-shake-up-boosts-onshore-investment-bond-use/ – Chesnara Life’s research indicates that the inclusion of unused defined contribution (DC) pension funds in estates, effective from April 2027, is prompting clients and advisers to reassess estate planning strategies. The study reveals that over a quarter of clients are already modifying their estate plans in anticipation of this change, with onshore investment bonds emerging as a significant alternative solution. The research underscores the growing importance of onshore investment bonds in tax-efficient financial planning, especially in light of upcoming legislative changes affecting estate planning.
- https://www.moneymarketing.co.uk/news/advisers-increasingly-turning-to-onshore-bonds-report-finds/ – A recent study by Chesnara Life UK reveals a significant uptick in advisers incorporating onshore investment bonds into their financial planning strategies. The research shows that 26% of advisers have notably increased their use of onshore bonds in the past tax year, with one in six writing over £5 million in business. The study also highlights that nearly 90% of advisers anticipate greater client interest in onshore bonds, indicating a growing trend towards these products in the financial advisory sector.
- https://www.chesnaralife.co.uk/advisers/investment-advisers/onshore-investment-bond-limited-companies/ – Chesnara Life offers an Onshore Investment Bond tailored for UK tax-resident limited companies, providing a means to invest lump sums for potential medium to long-term capital growth. The bond may offer opportunities for tax deferral, depending on the company’s adopted accounting standards. This product is designed to meet the needs of investors seeking a flexible, transparent, and tax-efficient investment solution, with a focus on general tax planning and capital management for limited companies.
- https://www.chesnaralife.co.uk/advisers/investment-advisers/chesnara-onshore-investment-bond/ – The Chesnara Life Onshore Investment Bond is designed to meet the needs of investors seeking a flexible, transparent charging structure, potential growth, tax-efficient income supplementation, and effective inheritance tax planning. It offers control over capital and the ability to influence the timing of tax liabilities. The bond is suitable for long-term trust investments and provides a means for limited companies to invest. However, it is not suitable for non-UK taxpayers, non-UK residents, or short-term investors.
- https://www.chesnaralife.co.uk/advisers/investment-advisers/taxation/ – Chesnara Life provides comprehensive information on the taxation of Onshore Investment Bonds, detailing how the tax treatment differs when holding collective investments within the bond compared to holding them directly or through a General Investment Account. The bond offers tax planning opportunities, including aspects related to bond proceeds, tax planning strategies, and inheritance tax considerations. This resource is designed to assist advisers in understanding the unique taxation aspects of onshore investment bonds and how they can be leveraged for clients’ benefit.
- https://www.chesnaralife.co.uk/customers/making-changes-investment/ – Chesnara Life outlines the process for making changes to an Onshore Investment Bond, advising clients to consult their financial adviser before initiating any modifications. The guidance covers various aspects, including making withdrawals, understanding the tax treatment for individuals holding collective investments within the bond, and planning ahead to minimise tax liability. The resource emphasises the importance of professional advice in managing investment bonds and highlights the flexibility and control clients have over their investments.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article was published on 9th July 2026, which is within the past week, indicating high freshness. However, the content is based on a press release from Chesnara Life UK, which typically warrants a high freshness score.
Quotes check
Score:
7
Notes:
The article includes direct quotes from Mark Lambert, head of onshore bond distribution at Chesnara Life UK. However, these quotes cannot be independently verified through other sources, raising concerns about their authenticity.
Source reliability
Score:
6
Notes:
The article originates from Investment International, a niche publication. While it cites a press release from Chesnara Life UK, the lack of independent verification and the niche nature of the source reduce its reliability.
Plausibility check
Score:
7
Notes:
The claims about advisers increasing the use of onshore investment bonds in response to tax changes are plausible and align with industry trends. However, the lack of independent verification and the reliance on a single source raise concerns about the accuracy of these claims.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents information based on a press release from Chesnara Life UK, with direct quotes from Mark Lambert, head of onshore bond distribution at Chesnara Life UK. However, these quotes cannot be independently verified, and the reliance on a single source without independent verification raises concerns about the accuracy and reliability of the information presented.