Taking a beneficial tax break abroad

The two-pronged tax deferral opportunities offered by offshore bonds are well known: 1) at policy level (because tax is not levied on the policy fund); and 2) at policyholder level (because there is no tax charge until a chargeable event arises) The ability to take up to 5% of the premium each policy year (on a cumulative basis) is a bonus. The policyholder can receive value from the policy without triggering an immediate tax charge. Ultimately, however, tax is charged on the profit on the bond - the proceeds less the premium (adjusted for any part-surrenders). However, for one gr...