Anthony Rothwell highlights key reasons why offshore bonds have a place in retirement planning.
Reason 1 – Offshore bonds offer a tax efficient wrapper for a wide range of collective investment funds and cash. By deferring virtually all taxes, the investor can choose when he or she pays the tax and may be able to elect to defer the happening of a chargeable event until a more favourable time. As offshore bonds are non-income producing assets, there is nothing for investors to report on their self assessment form until a chargeable event occurs. Although the death benefit is usually minimal, a life policy needs at least one life assured (who can be separate to the policyholder). As th...
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