Standard Life International launches enhanced offshore bond

Standard Life International Limited is pleased to announce the launch of an enhanced offshore bond, building on the success of the company’s first International Bond launch in January 2006.

Managed and serviced by Standard Life International in Dublin, the enhanced International Bond features a significant increase in the range of investment options available to customers. In addition to the insured funds available previously, advisers and their clients can now choose from a wide range of mutual funds, a panel of Discretionary Fund Managers, a selection of deposit accounts and a whole of market option.

Commenting on the launch, Trevor Matthews, Chief Executive, Standard Life Assurance Limited said “I am delighted that Standard Life International is already building on the success of its first offshore product launched just over a year ago. The development of Standard Life’s Wrap concept has meant offshore investment is becoming a more established part of normal investment and tax planning than it may have been in the past. I expect that over time we will expand the products and services available from Standard Life International”

Commenting on the new offshore bond, Murray Drummond, Chief Executive of Standard Life International, said, “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. I am therefore delighted that we are now able to offer this enhanced product for advisers and their clients as it will deliver added flexibility to tax and financial planning.”

Murray continued, “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.”

Unlike onshore bonds where funds are subject to tax on all income and gains, an offshore bond grows virtually free of tax. When the bond is finally cashed in, the amount of tax owing will depend on the tax status of the person who owns the bond at that time – which can provide better tax efficiency for certain individuals, such as those who wish to gift money to their children/grandchildren in the future or who want to reduce a potential Inheritance Tax liability.