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Onshore…Offshore – you decide!

90 min watch 6 Jul 21

Onshore or offshore? It’s an age old question when it comes to insurance bonds.

On this seminar, Les “Offshore” Cameron, Head of Technical and Graeme “Onshore” Robb, Senior Technical Manager, looked at the different tax and advice issues with Onshore and Offshore bonds.

Having covered the issues, Vince “I’m neutral” Smith-Hughes, Director of Specialist Business Support introduced you to an individual, company and trustee client and asked the audience to decide onshore or offshore. Les and Graeme then explained why they should get the business. Will you change your mind and what will win – on or off?

Learning Outcome – to demonstrate an understanding of:

  • The respective merits and ta treatment of both onshore and offshore bonds with respect to individuals, trustees and corporates.

To claim your CPD certificate, test your knowledge with the questions below.

Write down your answers to each of the following questions and check your answers when you click through to claim your CPD certificate on the link below.

Test your knowledge

1. The gain calculation for full surrender of an Insurance Bond is?

a. Surrender value, less premium(s) paid, plus previous excess gains

b. Surrender value, plus previous withdrawals, less premium(s) paid, less previous excess gains

c. Surrender value, plus previous excess gains, less previous withdrawals

d. Surrender value, less premium(s) paid, less previous excess gains

2. Chargeable event gains on UK Bonds are not liable to basic rate tax. This reflects the fact that the funds underlying a UK policy are subject to UK Life fund tax?

a. Those underlying funds will be taxed at 20%

b. Those underlying funds will be taxed at 19%

c. Those underlying funds will be taxed at an effective rate lower than 20%

d. Those underlying funds will be taxed at 25%

3. With regard to the taxation of company owned bonds, the loan relationship rules apply. That means?

a. The tax treatment follows the accounting treatment

b. The accounting treatment follows the tax treatment

c. The company is taxed under the same chargeable event rules that apply to individuals and trustees

d. No tax is payable unless a director has loaned money to fund the bond application

Claim your CPD certificate