Offshore bond options available with AJ Bell Investcentre
You can use an AJ Bell Investcentre GIA to manage investments held in offshore bonds from a range of providers. This gives you flexibility and choice to meet client needs, using the systems you already know.
Offshore bond partners
We work with three offshore bond providers to give you flexibility and choice. Each offshore bond provider is long-established, and their structure complements our platform.
You’ll find all the necessary resources and important information to help you assess suitability and explain the solution clearly to clients on the dedicated offshore bond provider pages.
Canada Life International
To apply for a Canada Life International bond, head to their dedicated page to get started.
Standard Life International
To apply for an International Bond
To download their FAQs, click here.
Utmost Limited
To apply for an Utmost International bond, head to their dedicated page to get started.
What is an offshore bond?
An offshore bond is a versatile tax planning wrapper governed by international corporation tax rules. They are typically set up in jurisdictions with low corporate tax such as the Isle of Man or the Republic of Ireland.
Offshore bonds can be offered on either a ‘life assurance’ basis or a ‘capital redemption’ basis.
- Life assurance basis: tied to the life of the investor or a survivor; it ends and triggers a chargeable event upon the death of the last surviving life assured.
- Capital redemption basis: built with a fixed term (often 99 years) rather than relying on human life, meaning it does not end on death and is useful for certain corporate or trust planning paths.
As recent changes to CGT and IHT add complexity to the tax landscape, advisers are increasingly turning to offshore bonds as a practical solution for both individuals and trusts. Bonds can help manage tax outcomes over time, and offer flexibility around withdrawals and planning, whilst fitting neatly alongside broader estate and income strategies.
Using offshore bond providers can allow your clients to:
- benefit each policy year from tax-deferred withdrawals of up to 5% of premiums paid, with unused allowances carried forward, and potential top-slicing relief on chargeable gains arising on surrender or maturity.
- benefit from gross roll-up. This is possible within the bond because it is not taxed at source. The investment compounds faster than a standard taxed investment because the full gross amount remains reinvested.
- place their offshore bonds into trust. As their structure can be based on segmentation, it may be easier to assign and release parts of the bond to beneficiaries.
- access a wide range of funds – and you can switch between them without triggering a tax event.
The benefits for you and your clients
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Manage everything in one place: oversee offshore bond investments alongside clients’ other AJ Bell Investcentre accounts through our Funds & Shares Service.
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Reduce admin: streamline oversight and reporting, without switching between providers.
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Support broader planning: use the bond within trust and estate strategies, benefitting from segmentation for easier assignment and distribution.
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Investment consistency: we aim to allow access to the same range of investments that is available in your clients’ other wrappers on our platform. Please speak with the offshore bond providers about any local restrictions that may apply.
Tax treatment depends on individual circumstances and rules can change.
Understand how offshore bonds work
Watch this short video for a clear overview of how offshore bonds can support your clients’ planning.
- What an offshore bond is
- How offshore bonds work with AJ Bell Investcentre
- How to access offshore bonds, and how to onboard clients
Speak to our Business Development Team
Many advisers are already exploring how offshore bonds available with AJ Bell Investcentre can support their clients’ long-term strategy.
If you’d like to discuss how it could work for your client base, along with our pricing options, our Business Development Team is here to help.