An offshore bond is a lump sum life assurance policy which is established outside the United Kingdom. Depending on your individual circumstances there are a number of ways, mainly by implementing trusts, that your IHT liability can be mitigated.
- An offshore bond can be used to provide additional tax-efficient income
- Offshore bonds can be used to provide access to capital anywhere in the world
- Offshore bonds are considered foreign property so are not subject to UK Inheritance Tax whilst the investor is non-domiciled
Offshore Bond Risks:
- An offshore bond is not a risk-free product
- Your capital may be at risk due to the investments held within this wrapper
- Individual investments are subject to fluctuations and you may realise less than the sum invested