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Individual Taxation

This article explains deficiency relief; how it is calculated and applied, and the restrictions to its use.
This article is designed to assist you in advising your clients on the taxation issues related to an individual who is or is likely to become a UK resident and who owns a Personal Portfolio Bond (PPB).

More Individual Taxation articles

  • The super six benefits of an offshore bond for UK expatriates
    The aim of this article is to provide a high-level summary of some of the key UK taxation benefits which an offshore bond can provide to a UK expatriate investor. These benefits are presented for consideration alongside the other aspects of investment advice.
  • Offshore bonds for the UK expat
    Offshore bonds have been hugely successful, particularly in the UK where they are often chosen because of their flexible tax planning benefits. But for investors outside of the UK, including UK expatriates, they still have an important role to play when it comes to investing lump sums.
  • UK taxation of collectives held within an offshore bond
    This article looks at the taxation of a collective investment when held by a UK-resident bondholder (excluding companies) inside an offshore bond and considers any additional liability which may fall on the bondholder.
  • UK taxation of offshore bond Part III Personal Portfolio Bond taxation
    This article explains how personal portfolio bond taxation interacts with other UK chargeable events.
  • Pre-owned assets tax
    This article outlines the Pre-owned assets tax rules relating to intangible property and in particular offshore bonds. Pre-owned assets tax was introduced to impose an income tax charge where UK resident taxpayers successfully circumvent the gift with reservation of benefit rules for UK inheritance tax.
  • UK taxation of offshore bonds Part I Chargeable events
    The aim of this article is to explain how income tax will be assessed where UK resident individuals hold an offshore regular or single premium life assurance bond, or a capital redemption bond ('Bond') offered by Royal Skandia Life Assurance Limited (Royal Skandia), Skandia Life Ireland Limited (SLIL) or Old Mutual International Guernsey (OMIG).
  • UK taxation of offshore bonds Part II Tax and reliefs
    The aim of this article is to provide information regarding what reliefs may be available where a chargeable event gain has been made. It is recommended that this article is read in conjunction with UK taxation of offshore bonds - Part I Chargeable Events which details how the chargeable event regime works.
  • Tax Information Exchange Agreements and Double Taxation Arrangements
    The following article provides an overview of tax information exchange agreements (TIEAs) and double taxation agreements (DTAs) including specific details for Guernsey, Isle of Man and Ireland.
  • Offshore funds taxation for UK investors
    This article explains the changes to the UK tax regime applying to offshore funds following changes effected in December 2009.
  • UK taxation - Chargeable events and the interaction with time apportionment relief
    This article explains how time apportionment operates where non UK resident policyholder holds an offshore bond, returns to the UK and therefore become UK tax resident, then subsequently assigns the bond.
  • UK taxation - Chargeable Events and Legal Personal Representatives
    This article explains the tax assessment process in the UK where chargeable events occur following the death of the policyholder (or last policyholder for jointly held bonds). This applies only where the policyholder was not a trustee.
  • Qualifying Recognised Overseas Pension Schemes and Chargeable Events
    This article explains our UK tax reporting obligations as an offshore insurance company in respect of Qualifying Recognised Overseas Pension Schemes investing into our offshore bonds. It also explains our understanding of the taxation of the offshore investment bond held by a Qualifying Recognised Overseas Pension Scheme where the member has subsequently become UK resident.
  • Local authority assessment of investment bonds in the UK
    This article is designed to outline how life assurance and investment bonds could be assessed by UK local authorities and the impact this may have on means testing for residential care.


    When financial assistance for the cost of residential care is sought from a local authority, the income and capital of the individual applying for assistance will be assessed. Other assets, such as the family home, are not covered in this article.
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Royal Skandia have recently updated the nominations they offer. Donna Dyason recaps on the purpose of a nomination, why they are used and the parties to a nomination, before looking at how the new Royal Skandia nominations work.

A transcript is also available (pdf document)

Donna Dyason from Skandia International talks about Royal Skandia Nominations.
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