IFA awareness of benefits
of offshore bonds increasing
BY HELEN BURGGRAF
A growing awareness of the
potential uses for offshore
bonds in IHT and nondomicile
tax planning is the
main reason behind the
recent relatively strong performance
of the products, a
Legal & General International
survey of financial
advisers has found.
The study, conducted in
February, found almost six
out of ten advisers believed
a greater understanding of
the advantages of offshore
bonds lay behind their
recent popularity.
UK offshore bond revenues
grew by 2% in the
year to the end of
December, according to
Association of British
Insurers (ABI) figures. This
was considered a good
result given the financial
downturn and comparison
with onshore bonds, the
sales of which fell by 39%
in the same period.
David Fagan, chief executive
of L&GI, said a trend
in the UK “towards an
increasingly ageing population
that allows people to
accumulate wealth over a
longer period of time” was
creating a growing number
KEY FINDINGS
30.1% of advisers already
recommend offshore bonds.
29.4% said they anticipate
recommending them in the
coming year.
58.8% said awareness was
growing among the advisory
community of the uses of
offshore bonds, particularly in
IHT and non-dom tax planning.
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of working and retired individuals
with “surprisingly
healthy” liquid assets.
At the same time, “the
continuing public debate
about IHT in the media last
year has put estate planning
on more clients’ radar,
despite the recent fall in
house prices and introduction
of the transferable nil
rate band”.
Fagan added that another
L&GI study conducted
at the end of 2008 found
that IFAs were “increasingly
involved in IHT advice”
as the average age of their
clients increased.
“This trend is gathering
momentum in 2009 as we
see more ‘mass affluent’
consumers realising they
need to seek advice to
plan and manage their tax,
estate and wealth.”
Prudential Int’l boosts its
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