11th May 2026
M&G: Offshore bonds taxation explained
Offshore investment bonds are widely used in tax and estate planning, but understanding how and when they’re taxed is key. This article explains how offshore bonds are treated for UK tax purposes, including how gains are assessed and the main reliefs that may be available.
- Offshore bonds grow in a virtually tax-free environment which is known as gross roll-up.
- Individuals can offset their gain against any unused personal allowance, the starting rate of 0% and the personal savings rate if applicable.
- Individuals may be able to make use of top slicing to reduce the tax payable on the gain.
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Tax, Trust & ISA
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