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Offshore bonds and PPLI · The UK position
How an offshore investment bond works: structure, segmentation and UK rules
Budget of 28 October 2026: a further two points on savings income from 6 April 2027 were announced, taking the rates to 24%, 44% and 49% if enacted. Figures for 2027/28 on this page still use the Finance Act 2026 rates of 22%, 42% and 47%. What the Budget changes for offshore bonds.
An offshore investment bond is a life policy issued by an insurer outside the UK, with investments inside it. Most are standard bonds with a menu of funds. Private placement life insurance sits at the bespoke end of the same market: one policy, a larger premium and a portfolio run for one family. For a UK resident both are taxed as foreign life policies, with nothing due until a chargeable event, unless the policy lets you choose its assets beyond the permitted list. Then it is a personal portfolio bond, taxed on a deemed gain every year. This page takes the policy apart: how it is built, how the segments work and what UK law does at each step. If you want the overview first, start with offshore bonds for UK residents (tax rules, calculators and research).
Hypothetical £5,000,000 premium, year one
£0
UK income tax in year one when the policy holds only permitted funds, such as the insurer’s internal funds and authorised funds
£337,500
UK income tax in year one on the same policy if you can choose its assets yourself: a deemed gain of £750,000 (15%) taxed at 45%
Additional rate taxpayer, 2026/27. The deemed gain under ITTOIA 2005 s.522 is 15% of premiums plus earlier deemed gains, charged every year with no cash paid out, no basic-rate credit and no top-slicing relief.
UK law for the tax year 2026/27, for a UK-resident individual or UK trustees. Where a rate changes later, the date it takes effect is given.
In plain English
What is an offshore bond, and how does it work?
An offshore bond is a life assurance policy issued by an insurer outside the UK, most often in the Isle of Man, Ireland or Luxembourg, with an investment portfolio inside it. You pay in a lump sum, the money is invested in the funds chosen for the policy, and the policy pays out when you cash it in or when the last person whose life it covers dies. Despite the name it is not a bond in the gilt or corporate sense. It is a wrapper, and what it wraps can be almost any portfolio of funds.
Nothing is taxed while the money stays inside. The insurer pays no tax on the fund in its home jurisdiction, and you pay none on the growth from year to year. This is what the industry calls gross roll-up. The only leak is withholding tax on some foreign dividends, which the insurer cannot reclaim.
You can take 5% a year out without a tax return. Each policy year you may withdraw up to 5% of what you paid in, for twenty years, and unused allowance carries forward. Nothing is declared and nothing is paid at the time. It is deferral, not exemption: the withdrawals are added back when the bond finally ends. How the 5% allowance works.
Tax arrives at a chargeable event. Cashing the bond in, taking out more than the cumulative 5%, selling it, maturity, or the death of the last life assured. The gain is taxed as savings income at 20, 40 or 45% in 2026/27, and at 22, 42 or 47% from 6 April 2027. Unlike a UK bond there is no basic-rate credit to set against it, because no UK tax was paid inside. Top slicing relief can bring the rate down when twenty years of growth land in a single tax year. How offshore bonds are taxed, and the encashment calculator.
It is issued in segments. A bond is usually written as a cluster of identical small policies, often 100 or 1,000 of them. You can cash in whole segments rather than taking a withdrawal across the bond, and you can give segments to a spouse, an adult child or a trust. A gift is not a chargeable event; the new owner is taxed at their own rate when they cash in. Assigning a bond to family.
Years spent outside the UK come off the gain. If you were not UK resident for part of the time you owned the bond, the gain is reduced in that proportion. This is what makes the contract useful to families who arrive, leave or move between countries. Moving to or from the UK with a bond.
One rule turns it against you. If you can choose the individual assets inside the policy, beyond the funds the legislation permits, it becomes a personal portfolio bond and a deemed gain of 15% a year is taxed whether or not anything is paid out. This is where a bespoke private placement policy meets UK law, and it is the subject of most of this page. The personal portfolio bond rules.
What it costs, and what protects it. There are layers of charges: the insurer's own charge on the policy, the charges of the funds inside it, a discretionary manager if there is one, and an adviser. Some contracts also carry an exit penalty in the early years. What an offshore bond costs sets the layers out on a £1,000,000 premium. The Financial Services Compensation Scheme does not cover insurers outside the UK unless the policy is written through a UK branch; the Isle of Man runs its own scheme, Ireland and Luxembourg protect policyholders in other ways. If an offshore insurer fails.
Who it tends to suit. A UK resident paying higher or additional rate tax, with ISA and pension allowances already used, a portfolio that throws off interest or is traded often, and a horizon of ten years or more. It helps most when the money will come out at a lower rate than it would be taxed at today: in retirement, after a move abroad, or in the hands of children. It suits least a short horizon, a basic-rate taxpayer with a modest portfolio, or growth shares that will be held until death, when capital gains tax falls away anyway. The comparison with an ISA, a general investment account and a pension is in bond, ISA, GIA or pension, and the UK-issued alternative in onshore or offshore.
The position in brief
The same portfolio, held two ways
01
Without the policy
Tax falls due every year and is paid out of the portfolio: 20, 40 or 45% on interest, 10.75, 35.75 or 39.35% from 6 April 2026 on dividends above the £500 allowance, and 18 or 24% on gains the manager realises above £3,000. Whatever goes in tax stops earning anything.
02
With the policy
Nothing inside the policy is taxed on you while it stays invested, and switching funds is not a chargeable event. Tax arises once, at a chargeable event, as savings income. It can be timed: 5% withdrawals, segments, top-slicing relief, a year of lower income, years spent abroad, and a trust for the next generation.
03
The limits
The assets must be permitted funds, or chosen by a manager the insurer appoints. The gain is income at up to 45% (47% on savings income from 6 April 2027), with no basic-rate credit. The policy is not outside inheritance tax, has no FSCS cover and is reported to HMRC.
What an offshore bond is, and what PPLI adds
In the UK this kind of contract is called an offshore bond, an offshore investment bond or an international investment bond. It is a life assurance policy, or a capital redemption policy with no life assured, issued by an insurer outside the UK, most often in the Isle of Man, Ireland or Luxembourg, with an investment portfolio inside it. Most are arranged through financial advisers and offer a menu of funds to choose from.
| What it is | Who chooses the investments | How a UK resident is taxed |
|---|---|---|
| A standard offshore bondMost bonds sold in the UK market | You pick from the insurer’s menu of funds, or an adviser does it for you. The funds are of the kinds UK law permits. | Gross roll-up: nothing is taxed until a chargeable event, then the gain is savings income, with top slicing relief. |
| A bespoke policy (PPLI)One family, a larger premium | An insurer’s internal fund or a manager the insurer appoints and instructs runs a portfolio for that one policy. You agree a risk profile but do not pick the holdings. | The same as a standard bond, provided the policy stays outside the personal portfolio bond rules. |
| A personal portfolio bondA tax status, not a product | The terms let you, someone connected to you or someone acting for you select assets outside the permitted list, such as individual shares or a private company. | A deemed gain of 15% of premiums and earlier deemed gains every policy year, taxed whether or not anything is paid out (IPTM3610). |
Not every offshore bond is PPLI: most are standard bonds with a fund menu. PPLI is the bespoke end of the same market, and a personal portfolio bond is what any of them becomes if the policy gives you control over its assets. The detail is in the personal portfolio bond rules and what a bond may hold.
Private placement life insurance is a life insurance policy written for one policyholder or one family, usually for a single large premium, whose value follows a pool of investments the insurer holds against it. The insurer owns the investments; the policyholder owns the policy. When the policy is surrendered or a life assured dies, the insurer pays out the value of that pool, plus whatever life cover the contract adds. The appeal, in every country that uses it, is the same: the investments are taxed as part of an insurance contract rather than as the family’s own portfolio.
The “private” part is about who runs the money. In its American form the premium is invested through a separate account run by a manager of the family’s choosing, often in hedge funds, private equity or credit. In its continental form the premium sits in a fund inside the policy dedicated to that one family, run to a risk profile the family agrees. Both depend on the tax law of the place where the policyholder lives, and neither was designed for the UK. The charges of the contract itself, and how to read them, are covered on PPLI costs and economics; terms are defined in the PPLI glossary.
What the policy becomes under UK law
There is no UK regime called PPLI. A policy issued by an insurer outside the UK and held by a UK resident is a foreign life policy, and the UK market has a plainer name for it: an offshore bond.
It is taxed under the chargeable event rules in ITTOIA 2005 Part 4 Chapter 9. The tax falls on you if you are UK resident in the year the gain arises and you own the policy, settled the trust that holds it, or have it standing as security for your debt (s.465). Nothing is charged while the policy grows. A gain is measured only on a chargeable event: surrender of all rights, assignment for money or money’s worth, maturity, a death that gives rise to benefits, and part surrenders above the cumulative 5% allowance (s.484). A gift of the policy, or of some of its segments, is not an assignment for value, and assignments between spouses or civil partners living together are disregarded (IPTM3420).
The gain is savings income (ITA 2007 s.18(4)), taxed at 20, 40 or 45% in 2026/27 and at 22, 42 or 47% from 6 April 2027. Because it is income, neither the 18 and 24% CGT rates nor the £3,000 annual exempt amount comes into it, and a Scottish taxpayer pays the UK savings rates like everyone else. A UK policy’s gain carries a basic-rate credit because the UK insurer has paid tax on its fund; a foreign policy’s gain carries none (IPTM3720). That is the price of gross roll-up. Top-slicing relief can reduce the charge for individuals (s.535), and time-apportionment relief removes the share of the gain that relates to days you were not UK resident (s.528). The arithmetic, with the directly held comparison, is on tax efficiency; the gain calculation step by step is in chargeable event gains and top-slicing relief.
How private the placement can be
Here the UK parts company with the American and continental models. If the terms of the policy allow the policyholder, a connected person, or anyone acting for either of them to select the assets that decide its value, the policy is a personal portfolio bond (s.516). HMRC then taxes a deemed gain at the end of every policy year: 15% of the premiums paid plus the deemed gains already charged (IPTM3650). The charge compounds, and no cash comes out of the policy to pay it.
A policy escapes those rules if everything that can be selected falls within the permitted categories in s.520: the insurer’s internal linked funds, authorised unit trusts and OEICs, other collective investment schemes, investment trusts, UK REITs and their overseas equivalents, authorised contractual schemes and cash, offered to all the insurer’s policyholders or to a class of them on objective terms (IPTM7780). A manager can still run the money, provided the manager acts as the insurer’s agent, the fund is open to other clients and the policyholder cannot pick individual assets (IPTM7725). A discretionary manager is not a safe harbour on its own: if your investment objectives are drawn so tightly that you are in effect choosing the assets, HMRC treats you as the one selecting (IPTM7730). The full rules and a worked example are in the personal portfolio bond rules, and what the permitted menu can hold is on investment flexibility.
Offshore bond, or something more bespoke?
Three ways to wrap a portfolio, one that works in the UK
The three contracts below can look alike on a term sheet. For a UK resident the difference is who chooses the assets, and that single point decides whether the policy defers tax or creates it.
| US-style PPLI | Continental dedicated fund | UK offshore bond | |
|---|---|---|---|
| Built for | US taxpayers, under US federal tax rules for life insurance (IRC 7702 and 817(h)) | Residents of continental European countries whose law accepts a fund inside the policy dedicated to one family | UK-resident individuals and UK trustees, under ITTOIA 2005 Part 4 Chapter 9 |
| Who picks the assets | An investment manager running a separate account, often chosen by the family, often in hedge funds, private equity or credit | A manager running a fund for that family alone, to a risk profile and objectives the family sets | The policyholder chooses among permitted funds offered to all policyholders or a class of them, or a manager appointed by the insurer chooses without the policyholder’s say |
| Held by a UK resident | A foreign life policy. If the family or its adviser can select the account’s assets, a personal portfolio bond | A foreign life policy. Objectives set by the family can amount to selecting the assets (IPTM7730), which makes it a personal portfolio bond | A foreign life policy outside the personal portfolio bond rules (s.517 and s.520) |
| UK tax while it runs | A deemed gain of 15% a year, compounding, taxed at up to 45% | The same deemed gain, unless restructured | None until a chargeable event |
| UK tax at the end | Chargeable event gain as savings income, less the deemed gains already taxed | Chargeable event gain as savings income, less the deemed gains already taxed | Chargeable event gain as savings income, no basic-rate credit, top-slicing relief for individuals |
| Works for a UK resident? | No, not as designed | Only if rebuilt so the family cannot select, which makes it an offshore bond | Yes. This is the version UK law expects |
For a UK resident, then, the workable version of PPLI is an offshore bond. The bespoke element survives only in the choice of insurer, the width of its fund menu, the manager it appoints and the way the policy is set up, split into segments and written into trust. A family that wants to hand-pick single shares, a private company, property or a particular hedge fund inside a policy is asking for the one thing UK law taxes every year. A family arriving from the United States or the continent with an existing policy should have it reviewed against these rules before the end of the first policy year in which they are UK resident.
Six UK families, two ways of holding the same money
Hypothetical cases for 2026/27, individual owners, England. The policy loses in two of them, and a third needs care.
An additional rate taxpayer with an income-heavy portfolio
Held directly
£3,000,000 yielding 4% in interest produces £120,000 a year, and £54,000 of it goes in income tax at 45% before anything is reinvested.
Inside the policy
The £120,000 is reinvested gross every year. Tax comes once, at a chargeable event, at the rate you pay in that year. See the numbers on tax efficiency.
A family expecting to move abroad before cashing in
Held directly
Income tax and CGT paid during the UK years stay paid, whatever happens later.
Inside the policy
Gains made while you live abroad are outside UK income tax, so long as you stay away for more than five years; come back sooner and the temporary non-residence rules can pull them back into charge (IPTM3734). The new country may tax it.
Grandparents funding a trust for grandchildren
Held directly
The portfolio and all its growth stay in the grandparents’ estate, where inheritance tax is 40% above the nil-rate bands.
Inside the policy
Under a loan trust, an interest-free loan repayable on demand is not a transfer of value (IHTM14317). The growth accrues in the trust, outside their estate; the unpaid loan stays in it. See inheritance tax.
A new arrival with an existing bond
Held directly
For a qualifying new resident, the four-year FIG regime can relieve foreign income and gains held directly.
Inside the policy
Policy gains are not qualifying foreign income (RFIG45100). Time apportionment removes the share of days spent abroad: in HMRC’s own example, 365 of 1,801 days cut a £15,000 gain by £3,040.
Against the policy
A founder who wants his own stock picks inside
Held directly
Dividends and realised gains are taxed in the normal way, year by year.
Inside the policy
A personal portfolio bond. On a £5,000,000 premium the deemed gain in year one is £750,000 and the tax at 45% is £337,500, with no cash paid out. Year two is 15% of £5,750,000.
Against the policy
A patient investor in growth shares
Held directly
Gains are taxed at 18 or 24% only when shares are sold, and there is no CGT on death: the heirs take the shares at their value on the date of death.
Inside the policy
The same growth becomes income taxed at up to 45%, and the death that ends the policy is a chargeable event. On the tax efficiency page’s growth case the policy ends about £6.2m behind after 30 years.
Does the UK treatment fit you?
Five questions. You get back a reading list and the main risk your answers raise; there is no score and no recommendation. Nothing you choose leaves this page.
Self-check
Five questions for a UK resident
1. How long can the money stay invested?
Under 10 years10 to 20 yearsMore than 20 years
2. Your rate on savings income today
Basic rateHigher rateAdditional rate
3. What the portfolio mostly produces
Interest and fund incomeA mix of income and gainsGrowth shares, rarely sold
4. How you want the assets chosen
From the insurer’s fund menuBy a manager the insurer appointsBy me or my own manager, asset by asset
5. What comes next for the family
Staying in the UKLikely to leave before cashing inRecently arrived, or arrivingHeirs living outside the UK
Where your answers point
Usually in the policy’s favour
A horizon of 10 to 20 years: long enough for deferral to count, if charges are modest.
A high marginal rate today, with room to take the gain in a year when your rate is lower.
Assets chosen from permitted funds or by the insurer’s manager, which keeps the policy out of the personal portfolio bond rules.
Usually against it
None of your answers, on its own.
The main risk in your answers
Inheritance tax. A policy you own personally is part of your estate. The outcome for the family comes from the trust it sits in and the gift that put it there, under the seven-year rule and the relevant property charges, not from the policy itself.
The default answers are pre-selected and their result is shown without JavaScript. The self-check applies general UK rules to five answers; it knows nothing else about you and is not advice.
Who it may suit in the UK, and who it does not
May suit
A long horizon and a way out
- A horizon of well over ten years, so deferral has time to outrun the charges.
- A higher or additional rate taxpayer whose portfolio produces interest and fund income taxed every year when held directly.
- A family planning with trusts: a loan trust, a discounted gift trust or a discretionary gift trust, where the policy is a convenient asset for trustees (inheritance tax and succession).
- Someone who expects to leave the UK before cashing in, and to stay away more than five years (moving with an offshore policy).
- A family with heirs outside the UK, where segments can later be assigned by gift to adult children who pay tax at a lower rate or live abroad.
Does not suit
Where the policy costs more than it saves
- A low-turnover growth portfolio: gains taxed at 18 or 24% on sale, and not at all on death, would become income taxed at up to 45%.
- An investor who wants to hand-pick shares, a private company, property or particular funds outside the permitted categories: that is a personal portfolio bond (the rules).
- Anyone who needs FSCS protection. Offshore insurers are outside it; what protects the policy instead is set out on asset protection.
- Money needed within a few years, or a portfolio small enough that fixed policy charges weigh heavily.
- Anyone hoping the policy is private from HMRC. It is reported under CRS, and the insurer issues chargeable event certificates (privacy and reporting).
Research question
Ask a research question about an existing policy or proposal
In the question box, tell us in a few lines what the policy or proposal provides, who chooses the assets and where the family expects to live when the money comes out. No documents at this stage. We reply by email with the UK rules and sources that bear on it. We do not give personal advice or recommend a product: a decision on your own policy needs a UK adviser or tax specialist. You can also use the full question page.
What the policy does not do for a UK resident
Five limits that hold whichever insurer and whichever jurisdiction is chosen.
It does not make the gain tax-free. It defers tax to a chargeable event. The 5% withdrawals are returns of premium counted again in the final gain, not tax-free income (s.507; the 5% allowance).
It does not qualify for the four-year FIG regime. Chargeable event gains are not in the list of qualifying foreign income (RFIG45100).
It is not outside inheritance tax. A policy held personally by someone who is a long-term UK resident, meaning resident in at least 10 of the previous 20 tax years (IHTA 1984 s.6A), is in the estate at 40%. Since 6 April 2025 non-UK property settled by a long-term resident is no longer excluded property while the settlor remains one. Outcomes come from trusts and gifts: see inheritance tax and succession and the long-term residence test.
It has no FSCS cover (unless the policy is written through a UK branch). The scheme protects policies with insurers regulated by the Prudential Regulation Authority (FSCS). Protection depends on the insurer’s home jurisdiction: if an offshore life insurer fails.
It is not hidden. Insurers issuing cash value policies report under the Common Reporting Standard (IEIM400840), must issue chargeable event certificates (IPTM3210), and trusts holding investment bonds must register with HMRC (TRSM23030). What HMRC sees is set out in what HMRC learns about an offshore policy.
What it costs
A policy has its own layer of charges on top of the investment costs: the insurer’s administration and policy charges, any charge for life cover, and the costs of custody and of the manager. They are the reason a short horizon rarely works, and they vary too widely between insurers for a single figure to mean anything. How to read a charging schedule and set it against the tax deferred is on PPLI costs and economics, and the Charges Break-Even Calculator tool tests your own numbers. One UK point in the policy’s favour: Insurance Premium Tax does not apply to life insurance (Notice IPT1, para 2.3).
The five benefits, read for a UK resident
Tax efficiency
One bill at the end
Gross roll-up and timing against income tax at up to 45% on the gain, with a calculator that shows where it stops paying.
Inheritance tax and succession
The trust decides
Loan trusts, discounted gift trusts and gift trusts, the seven-year rule and the long-term residence test.
Asset protection
Creditors, divorce and insurer failure
What a life policy does and does not protect under UK law, and what happens if an offshore insurer fails.
Privacy and reporting
Who can see the policy
What HMRC, the courts, trustees and the public can learn about a policy, and what they cannot.
Investment flexibility
What the policy may hold
Permitted funds, insurer-appointed managers, switching without a chargeable event, and the limits on choice.
Questions
Private placement life insurance in the UK: questions
What is an offshore bond?
An offshore bond is a life assurance policy, or a capital redemption policy, issued by an insurer outside the UK, usually in the Isle of Man, Ireland or Luxembourg, with an investment portfolio inside it. It is normally bought with a single premium. A UK resident pays no UK tax on the growth while the money stays invested; the gain is taxed as savings income when there is a chargeable event, such as cashing the bond in or withdrawing more than the 5% annual allowance, which carries forward if unused. Not every offshore bond is private placement life insurance: PPLI is a bespoke policy of the same legal kind, built around a larger portfolio managed for one family, and it keeps that deferral only if it stays outside the personal portfolio bond rules.
What is private placement life insurance?
A life insurance policy written for one policyholder or family, usually for a single large premium, whose value follows a pool of investments the insurer holds against it. The insurer owns the investments and the policyholder owns the policy. On surrender or death the insurer pays out the value of that pool, plus any life cover the contract adds. How it is taxed depends entirely on where the policyholder lives.
Is PPLI the same as an offshore bond in the UK?
For a UK resident, in substance yes. UK law has no separate category for private placement life insurance. A policy issued by an insurer outside the UK is a foreign life policy taxed under ITTOIA 2005 Part 4 Chapter 9, which is what the UK market calls an offshore bond. What makes it work or fail for a UK resident is who chooses the assets.
Can a UK resident hold a US-style or continental PPLI policy?
Holding one is lawful, but the tax result is usually poor. If the policyholder, a connected person or someone acting for them can select the assets outside the permitted categories, the policy is a personal portfolio bond and HMRC taxes a deemed gain of 15% a year of the premiums and earlier deemed gains. A family arriving in the UK with such a policy should have it reviewed before the end of the first policy year in which they are UK resident.
What is a personal portfolio bond?
A policy whose terms let the policyholder, a connected person or someone acting for either of them select the assets or index that decide its value (ITTOIA 2005 s.516). It escapes the rules only if everything selectable falls within the permitted categories in s.520, such as the insurer’s internal funds, authorised and other collective funds, investment trusts, REITs and cash. The deemed gain is charged every policy year, with no cash paid out and no top-slicing relief. The detail is in the personal portfolio bond rules.
Can I have my own investment manager inside the policy?
Only on terms that leave the choice with the insurer. HMRC accepts that a manager acting as the insurer’s agent, running a fund open to other clients, where the policyholder cannot select individual assets, does not in general make the policy a personal portfolio bond (IPTM7725). But if your investment objectives are drawn so narrowly that you are in effect choosing the assets, HMRC treats you as the one selecting (IPTM7730).
How is the policy taxed when I cash it in?
A full surrender, a withdrawal above the cumulative 5% allowance, an assignment for value, maturity or the death that ends the policy is a chargeable event. The gain is savings income, taxed at 20, 40 or 45% in 2026/27 and at 22, 42 or 47% from 6 April 2027, with no basic-rate credit because the insurer is outside the UK. Top-slicing relief can reduce the tax for individuals, and time apportionment removes the share of the gain relating to days you were not UK resident. See tax efficiency.
Does PPLI help with inheritance tax in the UK?
Not by itself. A policy held personally by someone who is a long-term UK resident is part of the estate, taxed at 40% above the available nil-rate bands. The policy is a convenient asset for trusts such as a loan trust or discounted gift trust, and the inheritance tax result then comes from the trust and the gift under the normal rules, including the seven-year rule and the relevant property charges. See inheritance tax and succession.
Which jurisdictions issue policies to UK residents, and are they protected?
Insurers in the Isle of Man, Guernsey, Jersey, Ireland and Luxembourg commonly write policies for UK residents. A policy issued by one of those insurers is not covered by the Financial Services Compensation Scheme (unless it is written through a PRA-authorised UK branch, so check the issuing entity). The Isle of Man scheme is described as paying up to 90% of the value of a protected contract; Guernsey has no scheme but requires assets covering at least 90% of policyholder liabilities to be held in trust; Ireland’s compensation fund excludes life policies; Luxembourg relies on segregated custody of policy assets. See jurisdictions for UK residents.
PPLI.com is not authorised by the Financial Conduct Authority and does not give personal advice. This is general information about UK law, not an invitation or inducement to enter into any insurance or investment contract. Policies issued by insurers outside the UK are not protected by the Financial Services Compensation Scheme.
Sources and authorities
Read as at 23 September 2026 for the tax year 2026/27. A particular policy still has to be checked against these rules on its own terms.
- ITTOIA 2005 Part 4 Chapter 9: gains from contracts for life insurance; s.465 (who is liable), s.484 (chargeable events), s.507 (5% allowance), s.528 (time apportionment), s.535 (top-slicing relief).
- ITTOIA 2005 s.516, s.517 and s.520: personal portfolio bonds and permitted property; IPTM3650 (15% deemed gain); IPTM7720, IPTM7725, IPTM7730 and IPTM7780 (internal funds, insurer-appointed managers, restrictions, classes of policyholder).
- ITA 2007 s.18(4): gains are savings income; gov.uk income tax rates 2026/27; gov.uk: changes to tax rates for property, savings and dividend income; CGT rates and allowances.
- IPTM3720 and HS321 (2026): no basic-rate credit on foreign policies; IPTM3420: assignments; IPTM3734: non-residence, temporary non-residence and HMRC’s time-apportionment example.
- RFIG45100: qualifying foreign income under the FIG regime.
- IHTA 1984 s.6A: long-term UK residence; HMRC Trusts and Estates Newsletter, April 2025: excluded property trusts; IHTM14317: loan trusts; gov.uk trusts and inheritance tax.
- FSCS: insurance cover; Notice IPT1: life insurance exempt from Insurance Premium Tax.
- IEIM400840 (CRS); IPTM3210 (chargeable event certificates from offshore insurers); TRSM23030 (trust registration).
Last updated: 23 September 2026. Our editorial standards describe how this material is checked and corrected.
Library · UK research
Where to go deeper
Investor control
The personal portfolio bond rules: why a bespoke PPLI portfolio fails for UK residentsUK research · 2026/27
Tax on the gain
Chargeable event gains and top-slicing relief on an offshore bondUK research · 2026/27
Inheritance tax
Inheritance tax on an offshore bond after April 2025: the long-term residence testUK research · 2026/27
Protection
If an offshore life insurer fails: policyholder protection for UK residentsUK research · 2026/27
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Checked against UK primary sources. The statutes, HMRC manual paragraphs and regulator pages cited are linked in the text so each statement can be read beside its basis.
Last updated: 29 October 2026
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