Expatriate investment bonds

An International investment bond is an offshore investment and is available to non-UK residents.

Investment Bonds are collective investments in which the investments of many individual investors are pooled. This pooling enables investors to benefit from the economies of scale made available to institutional fund managers. By investing this way hopefully you will get back more than the interest you would earn on a bank or building society account.

The investment bond itself is just a framework. Your money is actually invested in a wide choice of funds offering high growth potential.

We have long standing relationships with all of the UK's leading investment bond providers

By pooling all the money together, the fund managers can invest in a much larger spread of investments than you could buy yourself. And, by spreading investments, you are also spreading risk - where one type of investment might be hit by a run of poor performance, another could see its value soar. Bonds enjoy the facility to switch between these internal insurance company funds if desired.

Although classed as single premium investments, 'top up' facilities are offered, allowing further amounts to be invested either on a regular or ad hoc basis.

How Does the Investment Bond Work?
You can choose the currency in which you would like the Investment Bond to be denominated. This can be either GBP, USD or EUR. With our guidance you can choose the amount you wish to invest and the funds you wish to invest in. Depending on you attitude to investment risk we will guide you through your fund choice.

The amount you invest buys units in the offshore fund(s). As the value of these unit rise and fall, so will the value of your investment.

You can normally encash your Bond at any time, however, an encashment penalty may apply if you encash your investment in the early years.

What returns will I get for my investment?
This will depend on:-

	The type of bond you invest in
	How long you invest for
	Any charges that apply
	Any withdrawals you make
	The performance of the funds

Where is my money invested?
You choose where your money is invested. You may want to invest in a number of different funds at any time, to spread the risk Each fund is professionally managed on your behalf. Each fund is divided into units and your money buys units in the fund you choose. The price of these units depends on the value of the underlying investments within that fund. If the unit price goes up or down, so will the value of your bond.

Can I take regular withdrawals?
Yes, with most providers you make take regular withdrawals from outset without the early encashment penalty being applied. There is normally a maximum amount you can take as a regular withdrawal, in most cases 7.5%.

What about tax?
Your Investment bond is classed as an offshore investment and qualifies as Oversees Life Assurance Business under UK legislation. As such with the exception of specific funds, your investment will pay no tax on the underlying funds. Any personal tax liability will depend on the country of residence and your personal circumstances.
The aforementioned is based on current tax legislation. Tax legislation may change at any time

What happens if I take up residence in the UK in the future?
If you take up residence in the UK, your bond can normally remain in force unaltered. However, it may be continued on less favourable terms if you move to the UK to live within 12 months of effecting the bond. It may also be continued on less favourable terms if assigned to a UK resident or held in trust for a UK resident beneficiary.

What happens to my bond if I die?
If your bond is in your name only, this will end if you die. A lump sum is then payable the amount depending on the value of your units. You can set the Bond up on two lives, so that it can continue after the first death. You can set your Bond up under trust; payment on death would then be made to the trustees.

How long must I keep my bond?
With investment bonds you should be prepared to invest your capital over a period of at least five years. There is usually no restriction on how long you can invest beyond this.

It is therefore apparent that not all International and Offshore Investment Bonds are the same. With this in mind, expert advice and guidance is strongly recommended. Please complete our online enquiry form or request a call back and our independent investment specialist will contact you to discuss you individual circumstances.
We will source the whole market to provide you with the most cost effective and appropriate plan to suit you.

In order to comply with the UK prevention of money laundering procedures, we will ask you to provide a suitable proof of identification before any offshore products can be put in place.

Great British Finance Limited are authorised and regulated by the Financial Services Authority (FSA). The FSA does not regulate some forms of Mortgage, Inheritance Tax Planning, Credit Cards, Personal Loans, Deposit Accounts & Insurance. If you are submitting an online request, we would advise to read our KeyFacts statement, links are at the top and bottom of this page.

Investment bonds for UK expatriates

Expatriate investment bonds