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The growing importance of offshore bonds

Offshore bonds can help you reach your financial goals, offering tax efficiency, flexibility, control and simplicity. They are available exclusively through financial advisers.


Key benefits

Tax efficiency: Funds within an offshore bond can grow virtually tax-free (except for any withholding tax deducted at source on dividends earned). You can also withdraw up to 5% of the premium each policy year with no immediate liability to income tax. This withdrawal allowance can be carried forward.

Flexibility: Offshore bonds are divided into multiple segments to provide greater long-term flexibility. You can assign segments to individuals, helping you pass money to loved ones, or place segments in trust as and when required.

Control: You have control over the timing of withdrawals and when gains are realised, helping you to control your tax liability. This puts you in control of when and how you pass money on to loved ones.

Simplicity: Offshore bonds don’t have to be included on your tax return until a chargeable event occurs that creates a taxable gain. A bond enables you to hold a wide range of investments in one place, helping to make your investments easier to administer and manage.

Your financial adviser can provide a further explanation on these key benefits, and can help you decide if they are suitable for you.

 


Old Mutual International provides the following range of offshore bond solutions:

The Select Bond is a simple, online, cost-effective way for you to invest offshore; giving access to quality investment funds at a competitive price.

Minimum initial investment £20,000.

 

If you have more sophisticated investment needs, a Portfolio Bond gives you access to a broader range of investments, multiple currencies, a discretionary fund manager and/or an external custodian.

Minimum initial investment £25,000.

 

The Wealth Bond uses a professional investment expert, known as a Discretionary Asset Manager, on a full discretionary basis to manage the investments, giving access to an even wider asset choice than is normally permitted within an offshore bond in the UK, including direct equities.

Minimum initial investment £100,000.

 


Could an offshore bond help you?

If you would like to know whether an offshore bond could be right for you, please speak to your financial adviser.