Financial services provider Standard Life International has launched its enhanced offshore bond, hoping to build on the success of the group's first international bond launch in January 2006.
The enhanced international bond will be managed and serviced by Standard Life International in Dublin, Ireland. It features a wider range of investment options available to customers, as well as additional types of mutual funds to the existing insured funds.
Furthermore, the bond also offers a panel of discretionary fund managers and a selection of deposit accounts. The international bond also offers a transparent charging structure for customers and flexible commission options for financial advisers.
No longer seen as a niche product, offshore bonds are increasing in popularity as an efficient tax planning tool in certain circumstances and as a vehicle for gaining exposure to a wider fund selection than is available through traditional onshore bonds, commented Murray Drummond, chief executive of Standard Life International.
The new bond should be particularly attractive to individuals likely to spend time abroad, those concerned about potential inheritance tax liability or who are likely to exceed their pension lifetime allowance and for companies looking to make their cash work harder, he added.
Offshore bonds grow virtually tax-free, unlike onshore bonds, which are subject to tax on all income and gains. When the bond is cashed in, the amount of tax owing will depend on the tax status of the person who owns the bond at the time.