Onshore Or Offshore?

According to the Inland Revenue, they might soon be treated the same for tax purposes.  This could mean more funds open to investors as most investment or insurance companies offer separate onshore and offshore funds.   If they were taxed in the same way, investors would have more choice with hopefully lower charges.  The current regime for taxing onshore and offshore funds differently started in 1984.  This was when Income Tax and Capital Gains tax were closely related.   However, the Inland Revenue have four proposals for change.  Scenario One - leave the taxation of onshore and offshore funds as it stands currently.  Scenario Two - go back to using the system in place before the reforms in 1984.  Scenario Three - review the current arrangements and rework them.  Scenario Four - start all over again!  The general view is that scenario three is the most likely to go forward.  For more on savings in general visit Savings Adviser.com.