UK ends capital redemption bond tax break for corporates

The Inland Revenue in the UK has stripped offshore capital redemption bonds of their tax advantages for corporate investors. This is a blow to offshore insurers and UK IFAs who had identified this as a potential growth market. Some offshore life insurers are now advising corporate clients to switch out of capital redemption bonds. The market is estimated to be currently worth more than £1bn. The Revenue announced that from 10 February a company-owned capital redemption bond would be taxed under the loan relationship rules. These rules impose an annual charge to tax on any internal growth...