Independent Financial Advisers

Use your Individual Savings Account (ISA) Allowance. 

Fund Management Groups consider ISAs such a good selling opportunity that they often make the cost of investing in their funds through ISAs cheaper than if you invested in the same fund but without the ISA wrapper.

Offshore bonds are not UK-based investments, these can help mitigate your UK tax bill if you are a UK expatriate or a foreign national living in the UK. 

For those at, or near, the Lifetime Allowance (£1.65 million 2008/09) an offshore bond can be used to provide additional tax-efficient retirement income. 

For those considering or about to emigrate or work abroad, offshore bonds can be very tax-efficient and used to provide access to capital anywhere in the world. 

For foreign nationals living in the UK, offshore bonds are considered foreign property so are not subject to UK Inheritance Tax whilst the investor is non-domiciled. 

Offshore bonds are particularly attractive for those who are planning to retire overseas (or work abroad), as it may be possible to cash them in tax free; usually there is an income tax charge to pay on any gains. Offshore bonds are also useful in estate planning, as they can be gifted (or assigned) to a third person without incurring a tax charge. 

Both offshore bonds and onshore bonds are useful for pensioners whose income may just exceed the threshold to qualify for the age allowance. People between the ages of 65 and 74 and 75 or over begin to lose their age related personal allowances if their income exceeds £21,800. But income from offshore bonds and onshore bonds is not included in the calculation because HMRC sees it as a "return of your capital".

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