Offshore Investment

There was a time when offshore investment provided the ultimate solution for tax-shy UK investors.

In more recent times, successions of governments have removed many of the benefits that originally made offshore investment so popular but there are still some possible advantages.

Offshore investment is open to individuals over the age of eighteen. In the most part eligibility depends on an individual’s tax status and this is governed by an individual’s ‘domicile’ of origin.

If the UK is your birthplace and permanent home then it will most likely be your domicile. If your domicile is not the UK then your overseas investments are protected from UK tax as long as they are not channelled into this country. This may present some opportunities for somebody whose spouse’s domicile isn’t the UK to channel some assets into the spouse’s name. This is of course subject to many rules and regulations and a consultation with an independent financial advisor is recommended in order to get a clear picture of the situation.

On a standard offshore account tax is paid annually via a tax return. In some situations tax on interest from offshore investments can be deferred until the money is brought into the UK. If the investor then moves abroad (without ever having money is brought into the UK) it may not be necessary to pay tax at all – though there may be some associated rules in the new country of residence and these should be fully researched.

Investment specialists constantly advise us to develop balanced portfolios and in the right circumstances offshore investments can be a diverse investment option.