An Offshore Bond is a life-insurance-based investment product issued by a non-UK insurance company, often located in well-regulated jurisdictions like the Isle of Man, Dublin, or Luxembourg. Designed primarily as a tax-efficient investment wrapper, an offshore bond allows investors to hold a broad range of assets in one structure while benefiting from gross roll-up, growth without immediate UK tax on income or gains.
Unlike ISAs or pensions, offshore bonds have no contribution limits, making them especially suitable for high-net-worth individuals, trustees, and investors who have already used their other tax-efficient allowances. They offer exceptional flexibility, including multiple currency options, segmented policy structures for tax planning, and the ability to appoint discretionary fund managers.
Key Benefits:
- Tax-efficient growth — investments grow without immediate UK tax deductions.
- Tax deferral — choose when to trigger a taxable event.
- 5% annual withdrawal allowance — cumulative and tax-deferred.
- No upper contribution limit — suitable for large lump-sum investments.
- Investment flexibility — access to a wide range of asset classes worldwide.
- Estate planning advantages — can be held in trust, assigned, or structured for probate avoidance.
Withdrawals, assignments, and surrenders can be tailored to manage tax liabilities effectively, and strategies like top-slicing relief and time apportionment relief can further enhance efficiency. Offshore bonds can also be integrated with ISAs, pensions, and other wrappers as part of a wider tax and investment strategy.
At Tacit, your offshore bond investments are administered in partnership with AJ Bell Securities Ltd, ensuring specialist custody, robust safeguarding, and operational expertise while our team focuses on managing your portfolio.
Download the full guide to learn about provider jurisdictions, tax implications, estate planning uses, and whether an offshore bond suits your financial strategy.
