Products

We offer a range of Investment-Linked Pension Annuities designed to provide flexible, tax-efficient income solutions for individuals and their dependants.

Key features include:

• Immediate, temporary and deferred annuity options
• Remaining annuity fund is not lost on death
• Flexibility to structure future annuity rights for dependants, children and grandchildren
• Purpose trust for future directions settled by Bourse Life
• Choice of currency
• Minimum and maximum income calculations subject to the rules of the purchasing scheme
• Ability for policyholders and advisers to self-select investments and custodians
• Potential for gross roll-up, other than irrecoverable withholding taxes
• May allow an existing pension trust to be wound up once member benefits have been secured, including in some circumstances QNUPS and EFRBS (Part 7A compliance)

Our Investment-Linked Purchased Life Annuity offers flexibility and potential for tax-efficient income while allowing policyholders to maintain control over their investment choices.

Key features include:

• Immediate, fixed, variable, temporary and deferred options
• Remaining annuity fund is not lost on death
• Return of capital and taxable income element calculated by the appointed actuary
• Choice of currency
• Self-selected investments and custodian (with specific rules applying in the UK for highly personalised arrangements)
• Potential for gross roll-up, other than irrecoverable withholding taxes
• Trustee applicant option available

Through Bourse Life or Bourse Pension Trustees, as permitted under Guernsey legislation, we offer a comprehensive range of single or regular premium, multi-currency, portable pension trust and pension contract solutions for Guernsey non-residents. All are approved by the Director of Income Tax in Guernsey.

These international arrangements roll up free of Guernsey taxes and are often considered by UK expatriates intending to return to the UK after a period of overseas employment. They can consolidate pension benefits accumulated outside the UK regime, such as in corporate jurisdictions like Bermuda, into a tax-efficient, self-invested personal pension structure.

They may also appeal to active professional investors who wish to invest in a highly personalised manner and who expect to be UK-resident for only a short period, with no intention of becoming long-term residents. A Guernsey pension arrangement can provide flexibility and efficiency in managing retirement wealth during accumulation.

Guernsey is particularly attractive for these purposes, as the double taxation agreement between Guernsey and the United Kingdom, effective from 1 January 2020, supports the view that no UK tax should arise in respect of UK-situs dividends paid to Guernsey pension schemes.

Commonly known as offshore bonds, these policies provide a tax-efficient investment wrapper that carries minimal life cover. When invested appropriately, they allow assets to grow without taxation in Guernsey or the UK, other than irrecoverable withholding taxes.

This feature, known as gross roll-up, ensures that income and gains within the bond are not taxed in the UK until they are withdrawn, providing an opportunity for long-term growth and efficient tax deferral.

Key benefits of offshore bonds:

• Tax efficiency: Offshore bonds issued from Guernsey to non-residents may allow policyholders to defer tax on underlying income and growth until withdrawals are made.
• Flexible withdrawals: UK residents can withdraw up to 5% of the initial investment each year without an immediate tax charge. This annual allowance can be carried forward, offering a steady stream of tax-efficient liquidity.
• Estate planning and wealth transfer: Offshore bonds can be assigned as outright gifts without incurring UK capital gains tax, or placed in suitable trusts to assist with inheritance tax planning.
• Segmentation for flexibility: Policies can be divided into multiple segments to increase withdrawal flexibility and further defer taxation. For example, a single bond could comprise 100 individual policies, each taxed separately upon full surrender.

Income tax efficiency:

Offshore bonds may also help manage UK income tax liabilities. By holding appropriate non-UK collective investments within an offshore bond, UK policyholders may avoid annual tax reporting while benefiting from tax deferral. They can withdraw up to 5% of the initial investment annually without immediate tax implications, deferring tax until total withdrawals exceed the original investment. This structure provides flexibility, efficient access to capital and simplified reporting.

Who Should Consider Offshore Bonds?

Offshore bonds are not a one-size-fits-all solution, but they can offer significant advantages for specific investors:

• High net worth individuals: To diversify investments and optimise tax planning while accessing a wide range of opportunities.
• Those affected by UK tax changes: Particularly following the ‘non-dom’ reforms in the Finance Act 2025 relating to settlor-interested trusts and inheritance tax protections.
• Trustees seeking estate planning efficiency: Offshore bonds are considered non-income producing assets in the UK, simplifying trust administration and potentially reducing tax liabilities. They can also support intergenerational wealth transfer by allowing flexible access and control over distributions to beneficiaries.