Tax factors in offshore versus onshore investing

tax

To dismiss offshore products simply because of their higher charges is to miss other important factors, not least being the tax benefits of investing in funds not subject to UK law.

There are a number of factors to consider when deciding whether to invest offshore or onshore, one of the key issues being tax. Duration of investment and return are also important factors. Many UK-based intermediaries simply look at charges and note offshore is invariably more expensive than onshore. But the critical thing is charges are just one of many variables and only by looking at all the variables can you make informed decisions. If you have an offshore policy you don't pay tax for the proportion of the time you spend outside the country. If I had a bond for 10 years and spent fi...