{"id":22002,"date":"2022-07-16T13:53:24","date_gmt":"2022-07-16T13:53:24","guid":{"rendered":"https:\/\/theprogenygroup.com\/knowledge-hub\/offshore-investment-bonds-explained\/"},"modified":"2022-07-16T13:53:24","modified_gmt":"2022-07-16T13:53:24","slug":"offshore-investment-bonds-explained","status":"publish","type":"post","link":"https:\/\/theprogenygroup.com\/en-hk\/knowledge-hub\/offshore-investment-bonds-explained\/","title":{"rendered":"Offshore investment bonds explained"},"content":{"rendered":"\n

Offshore investment bonds explained<\/h2>\n\n\n\n

There are a number of tax efficient methods of saving and investing, which may help build your capital over time. One option are offshore investment bonds, which are issued by companies outside of the UK. They can be very effective if you\u2019ve used up your pension and tax allowance, and still have funds available to invest tax efficiently. Bonds can also be helpful when it comes to estate planning, in some circumstances, to sensibly guard against unnecessary Inheritance Tax. And they can be a useful tool if you plan to gift money to family or friends in the future.<\/p>\n\n\n\n

What are offshore investment bonds?<\/h2>\n\n\n\n

Offshore investment bonds (also known as international bonds) work as a tax efficient wrapper, giving you the ability to save and invest your money without paying tax on any investment growth. They can be used to invest a lump sum or more regular amounts and are generally worth considering if you\u2019re looking for a medium to long term investment, ideally when you\u2019re happy to tuck your money away for five years or more. These types of bonds are issued in secure jurisdictions with high levels of investor protection, such as the Isle of Man. They give access to broad range of assets, and a selection of investments. It\u2019s also possible to switch the holdings as and when your investment preferences change. In the future the bonds can be used to create a regular income or help fund your retirement.<\/p>\n\n\n\n

Are offshore investment bonds taxable?<\/h3>\n\n\n\n

Offshore investment bonds aren\u2019t taxable whilst you invest or as the fund grows, making them a good choice while you have the ability to save capital. Tax may apply as and when you come to withdraw funds, but it depends on your personal tax status at the time and whether you bring the funds into the UK or not. It\u2019s also possible to withdraw up to 5% from the bonds without an immediate UK tax charge tax charge, for up to 20 years.<\/p>\n\n\n\n

Why consider an offshore bond<\/h3>\n\n\n\n

There are a number of reasons why offshore bonds can be a useful option when it comes to your investment strategy:<\/p>\n\n\n\n