It is also worth considering whether a top-up to an older bond (pre 6 April 2013) is the right option as it will mean the bond then becomes subject to the new rules regarding excess events.
The impact of this change on excess events is that the client will potentially have a greater exposure to tax, as the number of years the gain can be spread across is reduced.
This brings offshore bonds taken out on or after 6 April 2013 (or those added to from this date) in line with onshore bonds which have always had this rule.
Advisers based outside the UK who have UK clients holding an offshore bond should also be aware of this change. If their client withdraws over 5% income each year whilst overseas, when they return to the UK, top-slicing on future excess events will be impacted.
There is no need for this change to cause alarm as it will affect so few clients. However, the impact on those few clients could be fairly significant, so it is important advisers familiarise themselves with the changes and are able to advise their clients accordingly.