The short answer

Offshore structures are investment "wrappers" based in international finance centres, designed for people who live outside their home country. The main ones are offshore bonds (life-assurance wrappers that let investments grow without yearly tax and allow 5% a year in tax-deferred withdrawals under UK rules), international investment platforms (flexible accounts holding funds and shares), offshore funds (such as Irish and Luxembourg funds and ETFs) and trusts (for passing wealth to family). Each suits different goals. The right choice depends on where you'll live, where you might retire, your family, the size of your investment and how long you'll hold it. Look for a strong jurisdiction, clear charges and flexibility — and take advice before you commit a large sum. Lawrence offers a free review to help you choose.

What "offshore" really means

"Offshore" simply means outside the country you live in. For expats, almost everything is offshore in some sense: a UK pension is offshore from Thailand, and a Thai bank account is offshore from the UK. In investment, though, the word usually refers to international finance centres — places that specialise in serving people and companies from many countries.

The main centres used by British expats are the Isle of Man, Guernsey and Jersey (the Crown Dependencies), and Ireland and Luxembourg in the EU. Each has decades of experience, strong investor protections and close links to the UK and European financial systems. Many of the biggest names in international life assurance, banking and fund management are based there.

Offshore doesn't mean secret. Financial accounts held abroad are reported automatically between tax authorities under international information-sharing rules, and expats are expected to declare income and gains wherever they're taxable. The point of these structures isn't to hide anything — it's to give people who live across borders a neutral, flexible and well-protected home for their money that works wherever life takes them.

Why expats use offshore structures

Most people at home don't need offshore structures. Expats often do, for practical reasons:

• UK accounts become harder to keep: many UK platforms and ISAs restrict or close accounts for people living abroad.
• Portability: an offshore structure stays with you if you move from Thailand to another country, or back to the UK.
• Tax deferral: bonds let investments grow without yearly tax, giving you control over when — and where — any tax arises.
• Currency choice: hold your investments in pounds, dollars, euros or other currencies.
• Estate planning: structures that work with trusts and make passing money to your family simpler.
• Access to global investments: a wide range of international funds in one place.
• Strong protections in long-established jurisdictions.
• One home for everything: consolidating scattered savings into one place you can manage from Thailand.

The main structures at a glance

These aren't alternatives so much as building blocks. A typical expat might hold an international pension, an offshore bond or platform for their main investments, a regular savings plan for school fees, an offshore bank account for convenience — and a trust around some of it for the family. The skill is in choosing which blocks you need and putting them together so they work in both countries.

How the main structures compare

A broad guide to the four structures most expats use for investing.

Many expats use more than one. Pensions are covered in our Retirement & Pension Planning guides.

Offshore bonds explained

An offshore bond — sometimes called a portfolio bond or international investment bond — is the structure expats ask about most. Despite the name, it isn't a bond in the sense of a government or company loan. It's a life-assurance policy issued by an insurer in a centre such as the Isle of Man, Ireland or Luxembourg, which acts as a wrapper around a portfolio of investments you choose.

You invest a lump sum (and can usually add more later). Inside, the money is invested in a range of funds — often hundreds to choose from — and can be switched between them. Because the policy is technically life assurance, it pays out a small extra amount when the last life assured dies, but its real purpose is investment.

Gross roll-up

The big advantage is that investments inside an offshore bond grow without UK income tax or capital gains tax being charged year by year. Rathbones calls this "gross roll-up". Your returns compound untaxed, and tax is only considered when a "chargeable event" occurs — such as cashing in the bond or taking more than the allowance.

The 5% allowance

Under UK rules, you can usually withdraw up to 5% of what you've invested each year, for up to 20 years, without an immediate UK tax charge. Unused allowance carries forward. On a £200,000 bond, that's £10,000 a year — or your full original investment over twenty years. These withdrawals are treated as a return of your capital for UK purposes; tax is deferred, not cancelled, and is worked out when the bond ends.

Segments

Bonds are usually split into many identical "segments" — perhaps 100 or more. That lets you cash in some segments and keep the rest, or give some to family members, giving you far more flexibility than a single policy.

Reliefs that suit expats

Two UK reliefs are especially valuable. Top-slicing relief spreads a gain over the years the bond was held, which can stop a large gain pushing you into a higher tax band. Time apportionment relief can reduce the taxable gain for the years you were not UK resident. For an expat who returns to the UK after years in Thailand, that can make a dramatic difference.

What makes offshore bonds so flexible

Beyond the tax points, offshore bonds have practical strengths that make them a favourite for expats with larger sums:

• Switch funds freely inside the bond without creating a taxable event.
• Choose your currency — pounds, dollars, euros and more.
• Give segments away: assignments not made for money or money's worth don't create an immediate tax charge.
• Place it in trust easily — bonds produce no income, so trustees usually don't need to file yearly tax returns.
• Take a regular income using the 5% allowance — useful in retirement.
• Move with you wherever you live.
• Name several lives assured, so the bond can continue after a death and pass to the next generation.
• Keep paperwork simple — one policy, one statement, many investments.

The main jurisdictions

Where offshore structures are based matters for protection, reputation and practicalities. These are the centres British expats use most.

Isle of Man protection as described by Friends Provident International. Always check the protections that apply to your own policy.

Regular savings plans

A regular savings plan is the monthly cousin of the offshore bond: usually also a life-assurance wrapper, but built around regular contributions over a fixed term — often 10 to 25 years. They're popular for long-term goals such as retirement and children's education, because they build the habit of saving and let growth compound over many years.

They work best when you're confident you can keep saving for the full term, as most plans have an establishment period in the early years with higher charges, and stopping early can be costly. Chosen well and kept going, a savings plan can be one of the most effective ways to build wealth from Thailand. Our guides to international regular savings plans and charges on long-term savings plans explain them in detail.

International platforms and offshore funds

International platforms

An international investment platform is an account, run from an international centre, that holds funds, ETFs and sometimes shares for clients living abroad. It's the expat equivalent of a UK investment platform — flexible, usually with no lock-in, and often with lower costs than a bond for simpler portfolios. Many platforms can also hold an offshore bond as an account, combining the two. Our guide to international investment platforms covers them in depth.

Offshore funds

Most international investors hold funds based in Ireland or Luxembourg — often under the European UCITS rules, which set standards for diversification, liquidity and the safekeeping of assets. Irish-based ETFs that track world markets are a low-cost core for many portfolios. Funds are what go inside a bond, platform or plan; the wrapper you hold them in decides how they're taxed and how flexible they are.

A point for anyone who may return to the UK

If you might become UK resident again, check that your offshore funds have UK "reporting fund" status. Gains on non-reporting offshore funds held directly can be taxed as income rather than capital gains in the UK. Funds held inside an offshore bond are treated differently, which is one reason bonds are popular with expats who plan to go home one day.

Where to start

Someone to help you choose the right structure, and the right way to move money into it.

Trusts: looking after your family

A trust is a legal arrangement in which you hand assets to trustees to look after for the people you choose — your beneficiaries. For expats, trusts are mainly about family: making sure money passes smoothly to a spouse, children or grandchildren, without long delays, and often with less inheritance tax.

Trusts are especially useful for expats because of the complications of dying with assets in two countries. Without planning, families can face probate in the UK, inheritance procedures in Thailand, frozen accounts and long waits. Money held in a well-drafted trust can often be paid to beneficiaries far more quickly. Thai law has no general equivalent of an English trust, so expat trusts are usually set up under UK or offshore law, often around an offshore bond.

Common types

• Discretionary trusts give trustees flexibility over who benefits and when.
• Bare trusts hold assets for named beneficiaries outright — simple, often used for children.
• Loan trusts let you lend money to the trust while keeping access to your capital, with growth outside your estate.
• Discounted gift trusts give away capital while keeping a fixed income for life.

UK inheritance tax and expats

Since 6 April 2025, UK inheritance tax on worldwide assets depends on long-term residence rather than domicile — broadly, whether you've been UK resident in at least 10 of the previous 20 tax years. Many expats remain within scope for several years after leaving, which makes estate planning more important, not less. A trust set up at the right time can make a real difference to what your family receives.

Thai tax and offshore structures

If you live in Thailand for 180 days or more in a calendar year, you're Thai tax resident. Since 1 January 2024, foreign income that a Thai tax resident brings into Thailand can be taxable, at rates from 5% to 35%. Income earned before 2024 is protected when you bring it in. A proposal to exempt foreign income brought in during the year it's earned or the following year has been drafted, but as of October 2026 it has not become law.

That makes structure and timing more important than ever. Investments that grow inside a bond or platform aren't brought into Thailand until you remit money. How much of what you bring in counts as capital, and how much as gains, depends on the structure and your records — and the Thai rules on investment wrappers are less settled than the UK's. Good records of what you invested, and when, are essential.

Many expats plan their remittances carefully: bringing in money from capital earned before 2024 first, keeping gains offshore until needed and spreading larger amounts across tax years. Because the rules are still evolving, it's worth taking advice before you bring in larger sums. Our guide to tax residence and international investments covers the Thai and UK rules in more depth.

If you might return to the UK

Many expats in Thailand aren't sure whether they'll stay for good. Offshore structures can be chosen with that in mind:

• Offshore bonds can be very efficient for returners, thanks to gross roll-up, the 5% allowance and time apportionment relief for your years abroad.
• Fund choice inside a bond should stay within the insurer's approved range, so the bond isn't treated as a "personal portfolio bond", which carries a yearly UK tax charge.
• Offshore funds held directly should have UK reporting fund status.
• Timing matters: cashing in a bond while non-resident, or in a low-income year after return, can reduce tax.
• Keep records of your residence history — it underpins time apportionment relief.

Planning before you move — in either direction — is almost always cheaper than fixing things afterwards.

Choosing the right structure

There's no single best structure — only the best one for you. These questions point the way:

1. Lump sum or monthly? A bond or platform for a lump sum; a savings plan for regular saving.
2. How long? Bonds and plans suit money held for many years; platforms suit shorter or uncertain timescales.
3. Where will you live? If a return to the UK is possible, a bond's UK tax features may be valuable.
4. Family and estate? If passing wealth on matters, a bond in trust is often the neatest answer.
5. How much? Bonds tend to suit larger sums; for smaller amounts, a low-cost platform may be better.
6. Which currency? Choose the currency you'll spend the money in.
7. How simple? Fewer, well-chosen structures are easier to manage from Thailand.
8. What will it cost? Compare total yearly costs, and any charges for leaving early.

What to check before you invest

Good offshore structures are excellent. The secret is choosing well and understanding exactly what you're buying. Before you commit, make sure you can answer these:

• Who is the provider, and where is it based?
• What protections apply if the provider fails?
• What are all the charges — set-up, yearly, fund and adviser — as a total percentage?
• Is there an establishment period or a charge for leaving early?
• Which funds are available, and what do they cost?
• Can you add money, switch funds and take withdrawals easily?
• How is your adviser paid, and for what?
• What happens if you move country or return to the UK?

Our guides to early encashment and liquidity and platform and fund charges cover these questions in more detail.

Three worked examples

Graham: a house sale and a retirement income

Graham, 64, sells his house in Kent and moves to Hua Hin with £300,000. He wants an income, flexibility to return to the UK if his health changes, and something simple for his daughter to inherit. Lawrence sets up an offshore bond in pounds, invested in a balanced worldwide portfolio, with withdrawals within the 5% allowance to top up his pension. Withdrawals to Thailand are planned around Thai tax rules, and the bond is written with his daughter in mind. If he returns to the UK, time apportionment relief will reduce any tax on the gains built up while he was abroad.

Chris and Noi: saving for school fees

Chris and Noi, in Bangkok, want to save for their two children's international school and university fees. Lawrence sets up a regular savings plan for each child, timed to pay out when the fees fall due, alongside a small lump sum invested on an international platform. Growth over the years pays a large part of the bill.

Margaret: passing wealth to her grandchildren

Margaret, 72, a widow in Chiang Mai, has £400,000 and two grandchildren. Having lived in the UK for most of her life, her estate is still within UK inheritance tax. Lawrence sets up an offshore bond inside a discretionary trust, so the money can pass to her grandchildren without probate delays, while she keeps a regular income from part of her savings.

The mistakes we see most often

1. Choosing a structure before a plan — the goal should come first.
2. Not knowing the total charges in pounds and percentages.
3. Committing to a long plan you may not be able to keep paying.
4. Too many structures, scattered across providers.
5. The wrong currency for where you'll spend the money.
6. Bringing money to Thailand without thinking about tax.
7. No trust or will when family matters most.
8. Losing records of what you invested and when.

Your offshore structure checklist

• Set your goals first: income, growth, education, family.
• Decide where you're likely to live — Thailand, the UK or elsewhere.
• Choose the structure that fits your goals, timescale and amount.
• Choose a strong jurisdiction and understand its protections.
• Know your total costs and any exit charges.
• Pick the right currency and a worldwide spread of investments.
• Plan your remittances to Thailand and keep good records.
• Review once a year, and at every life change.

Keeping your accounts secure

Offshore accounts are managed online from wherever you are, so good security habits matter:

• Use a password manager and a different strong password for every account.
• Turn on two-factor sign-in on every investment and bank account.
• Use a private, protected connection on hotel, café and condo Wi-Fi.
• Be wary of unexpected calls offering offshore investments — always check who you're dealing with.

How we researched this guide

We used Rathbones' guide to offshore bonds (March 2026) for the 5% allowance, gross roll-up, chargeable events, top-slicing and time apportionment relief, segmentation, assignment and trusts; Friends Provident International on Isle of Man policyholder protection; ThaiLawOnline's tracker of Thailand's foreign income rules (updated October 2026); and our earlier guides on UK inheritance tax for expats and on savings plans and platforms. Examples are illustrations. Checked 13 October 2026. Tax rules in both countries change, and investment values can fall as well as rise. This guide is general information, not personal financial or tax advice.