Offshore investment is not only for UK expatriates and foreign nationals living in UK; nor is it only for the super rich and famous. Financial products available through offshore centres are no more complex than onshore counterparts yet offer major tax efficient advantages. It is not true that investors can avoid paying tax by having money offshore, but the main advantages are:

Capital Gains Tax - CGT has to be paid onshore on investment such as unit trusts and stocks & shares. However, such investments may be held within an offshore bond with profits free from CGT. Further, there is flexibility of investment spread at anytime to match client wishes - with no CGT liability.

Income tax - Offshore Bonds are not taxed at source. An income tax liability only arises when they are encashed or if more than 5% of the original investment is withdrawn in any one year. The two main advantages follow that funds grow on a   “gross roll up”basis and any final tax liability may be deferred until more appropriate circumstances apply.

Inheritance Tax - this can be mitigated by the use of offshore bonds along with appropriate use of trusts

Long term care planning - by using carefully selected trusts, clients can be in a position of not only reducing any impact of taxation but also retain control to provide for your own long term care needs.

Corporate:

Deferred pension planning - UK pension investment because of tax incentives and virtual tax free investment (dividend income tax credits are not repayable) remains an extremely efficient way of providing future income. However it does require long term commitment of funds. By using offshore bonds, a gross investment situation can be had along with the ability to use the accumulated funds at a later date to purchase suitable pension to take advantage of tax incentives

Improve returns - because of “gross roll up” returns on corporate investment can be improved immediately

Tax deferral - as offshore bonds are “non income producing assets” they may be encashed at a time to mitigate tax liabilities e.g. by making a large pension contribution a company creates a trading loss against which the bond’s gain can be offset