Investment bonds can be onshore or offshore: the main difference being their tax liabilities. Onshore bonds are subject to UK corporation tax; offshore bonds are usually issued from tax havens outside of the UK where little or no tax is charged on the funds until the money is brought back onshore.
When you invest in a bond, you are allocated a certain number of units in the funds you have selected. You can choose to invest in a range of funds. Each fund then invests in a range of assets – such as shares and property – and the price of your units will rise and fall in line with the value of these assets.
Investing in a diverse range of funds can be an advantage in weathering the storms of market fluctuations but different assets carry different risks which need to be taken into consideration. We will consider your attitude to risk and help you if you are not sure what type of investments would suit you best.
You can also put either an onshore or offshore bond into Trust to protect it for future generations.