The research, which was conducted in September, found that half of advisers questioned said that they were already recommending offshore bonds, up from 30% in February 2009.
Most – 61% – cited a growing awareness of the potential advantages such bonds offer in helping their clients to mitigate the effects of inheritance tax on their estates.
The research coincided with the release by L&G of its most recent third quarter results, which revealed that year-to-date new business sales at the LGII operation leapt 47%, to £423m, from the same point a year ago, when they stood at £288m. New business in the third quarter alone was £168m, up 31% from last year’s third-quarter figure of £128m.
Contributing factors
LGII chief executive David Fagan said noted that a number of factors contributed to the increase, including the recent freeze on the level of the so-called transferable nil rate band at £325,000 until the 2014/15 tax year.
"[in addition], fewer advisers perceive offshore bonds as more expensive than onshore bonds," Fagan said.
"In our research only 6% of advisers questioned cited ‘too expensive’ as a reason for not using offshore bonds in coming months.
“There was also a 33% rise in the number of advisers saying offshore bonds are no longer more expensive than onshore bonds this time ‘round – 44% – compared to 33% just two years ago.”
The research was conducted for LGII by NMG Group, which surveyed 333 advisers online between 6 and 19 Sept. In 2009, some 306 advisers participated in the study, also carried out by NMG.
| Sept 2011 | Feb 2009 | |
| Percentage of IFAs who currently recommend offshore bonds to their clients | 50% | 30.1% |
| Percentage of IFAs who believe offshore bonds are no longer more expensive than onshore bonds | 44% | 33% |
Source: NMG Consultants, for LGII
