Why you should consider offshore bonds? | Old Mutual Wealth

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Why you should consider offshore bonds?

Offshore bonds can help a wide range of clients, potentially offering them tax efficiency, flexibility, control and simplicity.

The landscape is shifting, and more clients could benefit from investing in offshore bonds. Some new opportunities include:

  • more families looking for ways to pass on wealth during their lifetime
  • more people who are now at risk of reaching the pensions lifetime allowance
  • more families impacted by inheritance tax.


Key benefits

Tax efficiency: funds within an offshore bond can grow virtually tax-free (except from any withholding tax). Up to 5% can also be withdrawn each year with no immediate liability to income tax.

Flexibility: offshore bonds are divided into multiple segments to provide greater long-term flexibility. Clients can assign segments to loved ones or place segments in trust as and when required.

Control: the policyholder has control over timings of withdrawals and when gains are realised, helping to control their tax liability. This puts the policyholder in control of when and how they pass money on to loved ones.

Simplicity: offshore bonds do not need to be included on a tax return (unless the policyholder withdraws over 5% a year or encashes the bond). A wide range of investments can be held in one place, helping to make your client’s investments easier to administer and manage.

Download our key advantages document for more information.

 

Simplifying offshore bonds and how they can help clients

Helping parents (grandparents) save for their children – providing parents with control without compromising on tax efficiency.

Helping clients save for their retirement – if clients are squeezed by the reduced allowances, offshore bonds can provide a tax-efficient alternative.

 


Our offshore solutions to suit your clients - provided by Old Mutual International… 

A simple, online, cost-effective way for clients to invest offshore;  providing access to quality investment funds at a competitive price.

Minimum initial investment £20,000.

Find out more.


A solution for clients with more sophisticated investment needs who may want access to a broader asset range, multiple currencies, a discretionary fund manager or an external custodian.

Minimum initial investment £25,000.

Find out more.

 

A high-net worth solution for clients who want to use a professional investment expert (on a full discretionary basis) and access an even wider asset choice than is normally permitted within a UK bond, including direct equities.

Minimum initial investment £100,000.

Find out more.

 


Getting in touch

For more information please contact your usual Old Mutual Wealth consultant or contact one of our Offshore specialists.

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