onshore vs offshore
I may be taking an overly simplistic view of the situation here, but could someone please clarify.
Other than the annual product charges, what reason is there to use an onshore bond as opposed to offshore.
If the bond is deemed to have paid c20% tax, if the client encashes as a non tax payer, he will either pay 0 or 20% tax… so either worse off than the onshore bond or better of.
If they are 40% tax payer they have already paid 20% and will need to pay another 20% on encashment… i.e 40% in total.
I know there are some marginal differences in terms of top slicing etc, but can someone add some guidance… maybe an article on the matter or a worked example