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 afinancial 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 acompany, usually with aguaranteed return after afixed period. For more information, see the Gilts guidance note. National Savings Bonds are also atype 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 atype 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 abond, they pay asum (the
**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
Liability of the personal representativesAfter a person’s death, the property of the deceased is vested in the personal representatives (PRs) to enable them to manage and distribute the estate in accordance with the Will or the terms of intestacy. See the Personal representatives guidance note.The
Taxpayers may wish to consider basic tax planning arrangements in use the capital gains tax annual exemption. This type of tax planning is often reviewed at the end of the tax year.This guidance note first looks at the annual exemption in detail and then various tax planning strategies that might be
IntroductionA company that is not resident in the UK will only be subject to UK corporation tax if it carries on a trade in the UK through a permanent establishment. Where it does so, it will be subject to UK corporation tax on all profits that are attributable to the UK permanent establishment.
If the self assessment tax return shows that a repayment is due, the taxpayer can claim a repayment or leave it as a credit on their statement of account.The quickest and safest method is for HMRC to make the payment direct to the taxpayer’s bank or building society account and so they are asked to