UK Bond with a discounted gift trust – an Inheritance Tax planning tool for British expats moving back to UK? | Fiduciary Wealth

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Contributor: Fiduciary WealthCitizenship: UK NationalsLast Update: 27/10/2025

UK Bond with a discounted gift trust – an Inheritance Tax planning tool for British expats moving back to UK?

18 June 2021

British expats who are looking to return back to UK should seriously consider the benefits of establishing a UK Bond which allows tax free withdrawals of up to 5% per year of capital invested for up to 20 years.

If you have a potential UK Inheritance Tax liability then settling the UK Bond into a Discounted Gift Trust (DGT) is an effective way of reducing your tax exposure without losing full access to your investments.

A Discounted Gift Trust uses an actuarial based calculation to factor things like age, health and withdrawal requirements to determine the value of the discount which is immediately removed from your UK estate on day one for IHT purposes. The UK Bond settled into a DGT can be established on your return to the UK.

If you are looking at ways of how to save tax on your estate speak to a tax planning expert today about making your return to the UK as tax efficient as possible.

More about how we can help: https://www.fiduciarywealth.gi/what-we-do/our-services/who-we-help/what-we-do/our-services/returning-to-uk

Give us a call now on +44 207 998 0570 to book your free, no obligation consultation or e-mail us for any questions on enquiries@fwm.gi

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