In 2019 HMRC introduced new rules that brought non-resident investors in UK real estate into the charge to UK capital gains tax. The rules covered direct investments and also investments via funds predominantly invested in UK property, referred to as "property rich funds". Because of the way Offshore Bonds operate, bond providers including Standard Life International were within these rules and so CGT was chargeable on disposals of UK property holdings within customer's policies.

In late 2020, HMRC consulted on regulations that would exclude offshore bond holdings in property rich funds as long as the provider's holding was less than 10% of the fund. We have reviewed our holdings and confirmed that none of our holdings exceed this 10% threshold. These rules were enacted in March 2021 with retrospective effect, so we are pleased to confirm that our offshore bond offering is not affected by these rules.

We can also confirm that since the tax was introduced, Standard Life International has not deducted any tax for any policies and we are putting in processes to ensure we do not exceed the 10% threshold in future to protect our, and our policyholders' position going forward.

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