Budget shuts tax gains from 'rebate' bonds

Details of Budget Note 35 issued after Wednesday’s Budget reveal the Treasury is shutting down the tax advantages of allowing clients to claw back commission tax-free on high value offshore bonds held for less than three years. It is thought intermediaries had been setting up arrangements for investors which allowed them to invest more than £100,000 in premiums in an offshore bond and cash it in shortly after setting up the plan, as this created an additional return of tax-free cash because the commission rebate was treated as premium paid. The type of plans being created as more likely t...