This is an offshore single premium non qualifying investment bond. As the Policy is offshore it is not currently liable to any form of Income or Capital Gains Tax on policyholder's funds. (However, certain investment income may be subject to a non refundable tax deduction at source in its country of origin - withholding tax.) A Capital Redemption Bond offers all the tax advantages of standard offshore bond but with an added advantage. The bond has no life/lives assured simply an owner(s). As such, when the bond owner dies no claim occurs, the bond simply continues and is inherited, intact by the estate beneficiaries. Why can this be so useful? It allows investors/inheritors total control over when money is removed from the bond and allows the most tax efficient form of withdrawal to be used at any time. For tax planning this is a very efficient investment vehicle.
Date:28 November 2003
|
