Offshore investment has different features to onshore investment. Being aware of these differences will allow you to use them in your clients' best interests.

The specific benefits of an offshore bond depend upon your clients' individual circumstances. There are a number of benefits for UK residents that you should consider when making recommendations to your clients:

• Ability for investment portfolio to grow virtually tax-free.*
• Manage when and how much tax is paid.
• Broad investment choice.
• Reputable jurisdictions with appropriate regulations to protect investors.
• Product flexibility and choice.
• Effective inheritance tax planning.
• Ease of access to capital and income.

You might wish to consider an international bond if a client,

• Is planning on permanent residency outside the UK.
• Is planning periods of temporary absence from the UK.
• Is considering inheritance tax planning.
• Wants to benefit from the ability to assign assets to non-taxpayers.
• Is looking to take advantage of open architecture investment opportunities.
• Wants to defer cashing-in their investment, or taking income from it, into a period when they will be a lower rate tax payer.

INSIGHTS

The offshore bond market is growing and can offer you many opportunities to expand your current client base. We have developed a range of Insights to promote the benefits of offshore bonds and to help you to identify when an offshore bond can be particularly attractive to a client. 

You might also like to visit our tax and estate planning library for technical, marketing and other support material.

 

*We do not pay any capital gains tax or income tax in Ireland on investments held on behalf of policyholders. Therefore, investment gains are allowed to accumulate free of these taxes. Some assets in the bond may be liable to a small level of withholding tax on dividends or other income. This tax is income tax deducted from dividends and other income from overseas based investments. It is deducted at source to ensure that it does not leave the country of origin without being taxed.

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