Offshore sterling based unit linked funds benefit from a different tax treatment when compared to similar funds based onshore. Offshore funds grow free of most taxes and only suffer tax if/when the funds are remitted back to UK jurisdiction. As such, via careful planning, these type of funds can offer an excellent way of accumulating capital in a tax efficient manner.
The finer detail
- Offshore funds generally build up income inside the fund rather than paying any out.
- There is no tax to pay until the shares/units are sold, and then income tax is payable, (rather than capital gains tax), on any profit.
- The only tax to pay within the fund is usually withholding tax (a tax on interest and dividend payments).
Contact us for further information.