Onshore vs Offshore Bond Comparison | Hoxton Financial Services

Onshore vs Offshore Bond Comparison

Hoxton Financial Services

Assumptions

Reflects corporation tax paid inside the onshore life fund. Offshore funds roll up gross with no equivalent drag.
Assumes the whole top-sliced gain falls within this band — a common simplifying assumption for illustration.

Result

Onshore bond
£0
Net proceeds after tax
Offshore bond
£0
Net proceeds after tax
 OnshoreOffshore
Fund value at encashment
Chargeable gain
Top-sliced gain (per year)
Tax credit / relief applied
Tax due on encashment
Net proceeds
Illustrative only, based on simplified UK chargeable-event rules — it does not model personal allowance, starting rate for savings, the personal savings allowance, part-surrenders, multiple bond ownership, or time-apportionment for periods of non-UK residence. From 6 April 2027, savings-income tax rates are due to rise to 22% / 47% / 47%, with the onshore "tax treated as paid" credit realigning to the new basic rate — this tool uses current 2026/27 rates. Always confirm figures using full research/illustration software and current provider literature.