New investors in highly personalised offshore bonds will only be able to offset deemed gains if UK tax has previously been paid in future, says Guardian Wealth Management.
The move announced in the UK FInance Bill 2012 is an effort to stop investors being able to accrue deemed gains as a non-UK tax payer to later offset against actual gains as a UK tax payer once they’ve returned to the UK, .
David Russell, senior executive officer Guardian Wealth Management Qatar, said: “Perhaps unsurprisingly, The Finance Bill 2012 has wielded its axe on ‘deemed gain tax credits’ for non UK tax residents investing in highly personalised offshore portfolio bonds.
Fortunately, the change in legislation only applies to new investors, rather than those with existing policies. "Existing investors will continue to benefit, providing they do not make a further investment, or assign the policy to a third party," explains David Russell.
The ability of the Finance Bill to axe what was previously viewed as a boon to efficient tax planning, should be viewed as a call to action for non UK residents to take advantage of existing tax benefits as and when they arise, according to David Russell.
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