Why consider offshore bonds?
Offshore bonds are perhaps most commonly thought of as offering a tax advantage for higher rate taxpayers, but there are a number of other aspects that make them attractive for a wide range of clients.
Expand the headings below to see a range of client profiles in each category. The links from these will take you to some practical examples. Each briefcase contains a detailed scenario, as well as further links to interactive tools, client approach materials and other information to help you meet your clients' needs and develop this area of your business.
Please note that the figures used in these scenarios are for illustrative purposes only and should not be taken as an indication of past or future performance.
Offshore is a common term that is used to describe a range of locations where companies can offer customers growth on their funds that is largely free from tax. This includes "true offshore" locations such as the Channel Islands and Isle of Man, and other locations such as Dublin - where Prudential International is registered. Tax treatment can vary from one type of investment to another, and from one market to another.
Tax-resident in the UK for 7 out of last 10 years and has £80k+ offshore income
Wants
- To avoid £30k remittance tax charge.
- An investment that is fully portable if he/she leaves UK in future.
Tax-resident in the UK for 16 out of last 19 years or approaching that
Wants
- To avoid UK inheritance tax.
- An investment that is fully accessible.
Expects to move/work abroad in the future
Wants
- To invest for some years.
- An investment he can add to or access while abroad.
Seven-figure sum to invest and a UK taxpayer
Wants
- To increase investment return while having control over risk.
- To reduce the tax payable.
One or more children
Wants
- To plan for university costs in advance.
- To maximise tax-efficiency.
Expects to move/work abroad in the future
Wants
- To invest for some years.
- An investment he can add to or access while abroad.
Currently higher rate taxpayer, investing for capital growth
Wants
- To have additional funds available in retirement.
- To manage investments actively.
Currently higher rate taxpayer and has pension provision
Wants
- To retire early - without suffering pension penalty.
Seven-figure sum to invest and a UK taxpayer
Wants
- To increase investment return while having control over risk.
- To reduce the tax payable.
UK taxpayer earning £100,000 or more
Wants
- To avoid losing personal allowance.
- A wide choice of investments.
Is a trustee of a discretionary trust
Wants
- To minimise any tax liability for the trust.
- To be able to make payments to beneficiaries
Has property abroad or expects to retire abroad
Wants
- To invest for some years.
- An investment he can add to or access while abroad.
Non-taxpayer or has non-taxpaying spouse/partner
Wants
- To invest for several years.
- To make regular withdrawals to boost income.
Looking for long-term investment revenue
Wants
- To make regular withdrawals over a number of years.
- To minimise any capital erosion.
Has estate worth over £350,000/£700,000 for couples
Wants
- To minimise any tax bill for heirs.
- To retain control over the capital and who inherits it.
Seven-figure sum to invest and a UK taxpayer
Wants
- To increase investment return while having control over risk.
- To reduce the tax payable.
Is a trustee of a discretionary trust
Wants
- To minimise any tax liability for the trust.
- To be able to make payments to beneficiaries
Tools & calculators
