Unit-linked capital redemption bonds canaid IHT planning

With more and more offshore insurers starting to offer unit-linked capital redemption bonds, many fear the Inland Revenue could look into taxing these products in the same way as offshore life assurance bonds

A few offshore insurers have started launching unit-linked capital redemption bonds. These bonds create many opportunities involving individual, corporate and trustee investment, this can be useful for estate and inheritance tax planning. Capital redemption contracts are usually offered with a term of 99 years. Usually, the maturity value is a guaranteed amount or the value of units, if greater. Companies, trustees or other investors who do not want to have to specify an individual life assured typically use these contracts. In addition, some investors do not have a favourable outlook ...