Why Use Offshore Investment Bonds?

Investing in Offshore Investment Bonds provides a tax wrapper that allows you to invest flexibly and tax-efficiently in the extensive global range of mutual funds that the bond provider offers through trusted fund house partners. Relationship Managers will use their knowledge of your wider portfolio, to select which funds to hold in your Offshore Bond.

Designed as medium to long term investment solution, an Offshore Bond can offer a combination of potential growth and income, as well as the freedom to switch funds within the wrapper without tax liability.

What is an Offshore Investment Bond?

  • An Offshore Bond is a single premium insurance policy written outside the UK.
  • It also confers certain tax advantages on the assets contained within it.
  • Tailored for the medium to long-term (5-10 years), Offshore Bond Investments can offer a perfect mix of capital appreciation and income.
  • Additionally, Offshore Bond investments allow you the flexibility to switch funds within the wrapper without acquiring any tax liability.
  • You may be able to withdraw up to 5% of your original investment per year free of tax.
  • The Offshore Investment Bond is offered in the form of a Whole of Life Insurance Policy. The policy stays in effect until the death of the last surviving life assured. In the event of death, the policy pays out 100% of the investment value, plus life cover of 1%.

Why would you consider an Offshore Investment Bond?

An Offshore Bond may be suitable if:

  • You are looking to invest money offshore in a transparent, cost-effective instrument that provides a degree of flexibility, both in terms of fund choice and access to capital.
  • You would like to receive any income or dividends free of UK tax as you are based overseas.
  • You are a UK resident based overseas and not in the UK.
  • You have a minimum of £50,000 to invest in an Offshore Bond.
  • You are already taking advantage of your ISA allowance, Income Tax allowance, Capital Gains allowance and Pension allowance.

Invest tax-efficiently from a wide range of mutual funds.

  • With their understanding of your needs and wider wealth strategy, your Relationship Manager will help select the most appropriate funds for inclusion in the bond.
  • Enjoy growth potential over the medium to long term
  • Change the combination of funds within the offshore investment bond as your requirements change.
  • Enjoy the flexibility to make withdrawals that suit your personal tax circumstances.
  • Retain access to your wealth with the option to withdraw up to 5% per annum with no immediate tax liability.
  • Choose from a wide range of handpicked mutual funds from leading fund houses across the world.
    We pool in funds from numerous investors, thereby making our bonds more cost-effective.
  • Capital appreciation of funds within the Offshore Bond is exempt from UK Tax. However, enjoy growth potential over the medium to long term
  • Change the combination of funds within the offshore investment bond as your requirements change.
  • Enjoy the flexibility to make withdrawals that suit your personal tax circumstances.
  • Retain access to your wealth with the option to withdraw up to 5% per annum with no immediate tax liability.

In short offshore investment bonds are a great medium to long terms and tax efficient investment vehicle that allows you to take 5% tax free for 20 years thereby paying no tax.

Get in touch and we can guide you through a number of options from a range of different providers.