Offshore Bond Withdrawals to Fund ISAs

julesstewart1983

Hi,

Can anyone think of anything negative in advising a client to make withdrawals from their offshore bonds, which would cause a chargeable event however up to £18,500 (PA, PSA & Starting Savings Rate) each as they are currently non earners, and invest proceeds in ISAs? They will receive defined benefit pensions in a few years and therefore not always have these allowances to use on their offshore bond withdrawals so makes more sense to get into tax free vehicles in the meantime.

They are currently looking to generate an income from their bond anyway which got me to here as the next step.

Thanks!

richallum

Got very similar case here. Only potential issue is bond being disregarded for care fees.

arongunningham

Maybe just take a look at the advantages and discount them one -by -one:

https://www.oldmutualwealth.co.uk/Adviser/literature-and-support/knowledge-direct/investments/bonds/offshore/advantages-of-using-an-offshore-bond/

julesstewart1983

Thanks both.