UK expat tax caution on offshore bonds

Published:  17 Apr at 6 PM
Want to get involved? Become a Featured Expat and take our interview.
Become a Local Expert and contribute articles.
Get in touch today!
Tagged: UK, England
As reported by the Telegraph, expats with offshore portfolio bonds might need to alter their tax planning now that the UK has reformed its tax management of these bonds. The UK government has sealed a loophole which used to allow British expats with overseas bonds to avoid paying taxes on investment gains.

Overseas portfolio bonds--wrappers within which financial investments are held--used to be popular since investors were able to withdraw more than 5% of the bond’s value and did not have to pay tax on its withdrawal, as long as expats were outside the country when making the partial surrender.

When the investor subsequently went back to the UK, the "chargeable event" was able to be offset against upcoming chargeable events, despite the fact that no British tax had been paid for the original surrender.

The loophole has now been sealed so that expats returning to Britain will not have the power to offset prior chargeable gains where British taxes have not been paid. Expats will not be able to use actions made while abroad to reduce their British tax bill upon returning home.
Like this news?

Comments » No published comments just yet for this article...

Feel free to have your say on this item. Go on... be the first!

Tell us Your Thoughts On This Piece:

Your Name *
Email * (not published, needs verification one time only)
Website
Type:
  • Facebook
  • Follow us on Twitter
  • RSS feed
  • Facebook

Latest Headlines

News Links

News Archive