The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note explains what is meant by offshore bonds and foreign policies, the tax charges that are likely to arise, and how they should be reported on the tax return where the individual is resident and domiciled or deemed domiciled in the UK. See the Residence ― overview and Domicile guidance notes.
The word ‘bond’ has many meanings, even in a financial context. There are Government bonds (also known as gilts), and corporate bonds. With these sorts of bonds, the investor lends money to the government or a company, usually with a guaranteed return after a fixed period. For more information, see the Gilts guidance note. National Savings Bonds are also a type of loan to the Government. For more, see the National savings products guidance notes. The investor can also buy units in ‘bond funds’, which are the means by which large groups of investors hold collections of Government and corporate bonds.
In the context of life insurance, bond means something quite different. Insurance bonds are a type of life insurance policy.
For the taxation of UK insurance bonds, see the Life insurance policies, Life insurance policies ― top slicing relief and Life insurance policies ― deficiency relief guidance notes.
This guidance note discusses the taxation of offshore bonds and other foreign life insurance policies. Some more specialist areas are covered in the Offshore bonds and other foreign policies ― further topics guidance note, including cluster policies, personal portfolio bonds, the treatment of some older policies and the interaction between offshore bond rules and the remittance basis and temporary non-residence rules.
The taxation of life insurance is complex and these notes are only an outline. In particular, capital redemption policies and policies held in trust are not covered. For these, see IPTM1120, IPTM3410, IPTM7530 and IPTM3515 (capital redemption policies) and IPTM3250 and IPTM3260 (trusts).
When an individual buys a bond, they pay a sum (the premium) to the insurance company.
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
There are several sets of provisions in the Taxes Acts which relate to ‘close’ companies, most of which are anti-avoidance measures aiming to catch transactions between those companies affected and their owners, where there may otherwise be a tax advantage. Broadly speaking, most owner-managed or
This note offers guidance in respect of the administration of company tax returns. If a company or organisation is subject to corporation tax they will have to complete and file a company tax return for each accounting period. A company or organisation must, in the main, file a return even if they
Normal due dateSmall companies (including marginal relief companies) are required to pay all of their corporation tax ― nine months and one day ― after the end of the chargeable accounting period.For example, where a chargeable accounting period ends on 31 December 2018, the due and payable date for
From 6 April 2015, an individual can elect to transfer 10% of the personal allowance (£1,250 in 2020/21 and 2019/20) to the spouse or civil partner where neither party is a higher rate or additional rate taxpayer. The legislation calls this the ‘transferable tax allowance’ but the GOV.UK website
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.