Offshore Bond – Part Surrenders

The Offshore Bond – Part Surrenders calculator provides an indication of how Partial Surrenders (the 5% tax deferred withdrawal facility) of an Offshore Investment Bond can be used to;

  • fund school/university fees, or
  • provide a tax-efficient income in retirement.

Offshore Investment Bonds can be very useful investments when arranging financial plans for UK-based Non-Tax Payers.

This is because Non-taxpayers are able to utilise any of their unused Personal Allowance, Savings Rate Limit (for Savings income) and Personal Savings Allowance against the Chargeable Gain of an Offshore Investment Bond.

Chargeable Gains

Any Partial Surrenders in excess of the client’s cumulative unused 5% tax deferred withdrawals will be a Chargeable Gain.

However, having unused allowances to be offset against Chargeable Gains of an Offshore Investment Bond can be very useful for individuals who want to take Partial Surrenders with the objective to provide either;

a. a tax efficient ‘income’ (in retirement), or

b. fund Education fees.

Once the necessary details are input, this calculator will show the unused allowance available each year and the tax that will be due on the required withdrawals to provide the necessary ‘income’ or fees.