Offshore bonds and other foreign policies

Produced by a Tolley Personal Tax expert

Personal Tax

Guidance

STOP PRESS: At Spring Budget 2024, the Chancellor announced that the remittance basis would be abolished from 6 April 2025, although this only applies to foreign income and gains arising on or after that date. The remittance basis rules still apply to unremitted income and gains arising before that date but remitted later. For more details, see the Abolition of the remittance basis from 2025/26 guidance note.

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.

What is a bond?

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,

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