Offshore Investment Bonds offer you as investors, a spread of investments on a unitised basis, with ease of dealing, a clear charging structure and the ability to switch your investments to other funds within the bond at little or no charge within the same Investment Management Group. They should be viewed as medium to long term investments.

Investments and Savings
Investments and Savings

General Description

Offshore Investment Bonds accumulate virtually tax free with an element of withholding tax on UK equities and local taxation dependent on where the investment is based. It therefore offers better growth prospects over the medium to long term than other investments which are taxed on an ‘arising basis’. Tax on the growth is only levied upon encashment and then, only to the part being encashed.

This offers tax-planning opportunities to investors who may become non-resident for tax purposes in the future. Encashment of the bond whilst non-resident will not incur any UK tax liabilities. Time apportionment relief is also available so that even if the bond was not encashed while non-resident, that period would not count for tax purposes. For example a bond encashed by a UK resident who had been non-resident for 50% of the time that the bond had been in force would only be taxed on half of the growth.

A major feature of an investment bond is the facility to draw ‘income’ as and when required, as it is possible for the 5% of the original capital investment to be withdrawn as ‘income’ each year for up to 20 years.

Contact Us

If you would like to discuss any of the above in greater detail please contact us to arrange a free, no obligation initial meeting or to discuss your arrangements further over the phone.