Offshore private banking services 'can protect against 50% tax'

Making use of offshore private banking services is one way those with high levels of private wealth can minimise the impact of the new 50 per cent income tax rate.

This is according to the Financial Times, which has compiled advice on what those who fall into the new band can do in order to ensure they hold on to as much of their money as possible.

The newspaper explained there is currently a ’revival’ in the popularity of offshore bonds, which enable investors to pick from a variety of funds and not have to pay tax until the bond is exchanged for cash.

However, investors have been warned they should not opt for these solely for tax reasons, as some funds offered in offshore bonds are said to ’have less than stellar performance’.

The new tax applies to those who earn over £150,000 and business advisory firm Deloitte told the Financial Times recently that accountants have been working constantly to help employees protect their private wealth from the charges, which came into force on April 6th.ADNFCR-2318-ID-19756647-ADNFCR