Non-dom crackdown could be boost for offshore bonds

The new rules, which affect non-doms who have been UK resident for at least seven of the last nine years, come in on 6 April. The alternative for those not wishing to be taxed on the remittance basis is to pay UK tax on all worldwide income and gains as they arise. With offshore trusts set to become less favourable for non-doms, Killik & Co says offshore bonds represent an opportunity, as they do not produce capital gains and only give rise to taxable income when a ‘chargeable event’ occurs. Thus non-doms could elect to be taxed on worldwide income and gains but avoid producing such taxabl...