UK investors find new tax-free ways as government tightens money rules

British money-holders are finding off-shore solutions as tax rules get stricter‚ according to top-level financial experts. Marco Malagoni from Waverton and Ian Cook from Quilter report more clients asking about overseas options

The government made big changes: capital-gains tax went up to 18% for basic-rate payers and 24% for higher-rate ones (these numbers show how things changed since last month). The tax-free amount dropped to £3‚000 this spring – its way down from what it was about 2 years ago

Off-shore bonds let people grow their money tax-free and take out 5% yearly. Heres how it works: you can move unused parts to next years; when you take money out its taxed as regular income. “These options were only for rich people before but now more folks need them“ – Malagoni explains

An interesting case shows how it works:
* NHS doctor earning £100k
* Wife pays higher-rate tax too
* They have £2m savings
* Moving part into off-shore bond

The £20k ISA limit hasnt changed since it started about 7 years ago. If it grew with prices people couldʼve saved £56k more by now. Plus income tax limits stayed same since about 4 years ago and wont change for 3 more years

Cook says his clients are changing plans: “One person was going to keep pension money last but now weʼre putting ISA cash into off-shore bonds instead“. These bonds work great for families – parents can give them to kids over 18 who dont pay much tax

The good stuff about these bonds: you can still buy stocks and bonds; money grows faster cause theres no yearly tax; you get that 5% yearly tax-free withdrawal. But remember: youll pay tax if you take too much out or when certain things happen (like when someone passes away)