Best structure for long term offshore savings plan

[web of tax]

Question
I would like to structure my long term savings in a tax efficient manner for the future. UK tax residents have ISA's as a tax free wrapper. I would be grateful if anyone can advise if there is any equivalent tax free wrapper for non-residents? In other words, please can anyone advice what is the best structure for the long term savings of someone who intends to stay offshore from UK but may have to return to UK and become tax resident at some point in the future?

Background:
I am UK domiciled but have been non resident for ten years. I am currently resident in the tax free Middle East. Over the next few years I may remain overseas or I may return to the UK. I have modest savings which I have invested in US mutual funds and US shares through an online broker in the US called TD Ameritrade. I would like these savings to grow free from income tax and capital gains tax in a simlar fashion to ISA's in the UK. Because I have filled in the US W8-BEN form, the only tax currently deducted is by US authorities on the withholding tax on any dividends. However if I move back to the UK, I believe future gains on these US investments would be subject to UK income tax and capital gains tax. Is there some tax structuring I should do just now to reduce any future potential UK tax exposure?

Of course ISA's are not allowed for non residents of UK. However I have friends in a similar situation to me who have invested in UK ISA's saying the tax authorities turn a blind eye to this. Is this credible?

Solutions?
My limited knowledge so far has the following potential alternatives to my current method of making direct investments through TD Ameritrade:
1. Offshore trusts. I believe they require a sizeable minimum investment to make the recurring fees worthwhile incurring.
2. Offshore companies. Issues could include the know your customer requirements of say TD Ameritrade in requiring knowledge of the ultimate beneficiary
3. Life insurance structure. Issues include the limited number of mutual funds available from the provider i.e. Skandia, Friends Provident. Also the fees (entry, annual, exit, bid / offer spread) could be expensive.

Any assistance would be much appreciated.

[Tax Champion]

It all depends on your plans - while you remain non-resident, it really doesn't matter where you keep your offshore savings as there are no UK tax consequences, but once you become UK resident again, the whole will become subject to UK tax, wherever in the world it might be. You might also need to consider other aspects such as security of deposit, ease of access, and of course the tax situation of the country in which you are resident (or where the investments are held). "Offshore" investments will not avoid UK tax for a UK resident.

[macgregor1]

I know this is an old post but i just wanted to throw in my 2 cents if the folks are still looking.
You should also consider an offshore bond structure which could include your current investments. If for example you take out a 10 year bond and are outside of the UK for say 5 years then you may be allowed time apportionment relief where only half of those years is taxable on the gains made. The tax can also be deferred until you actually cash in the investment which if it is at retirement may put you in a lower tax bracket than if you had been choosing to be taxed yearly as gains were made.
There are indeed many options but you will have to sit down and try to figure out what your future plans are and where you plan to be living/ working during that time.

Cheers,

Colin

[oliveB]

Saving is income not spent, or deferred consumption. Methods of saving include putting money aside in a bank or pension plan. Saving also includes reducing expenditures, such as recurring costs. In terms of personal finance, saving specifies low-risk preservation of money, as in a deposit account, versus investment, wherein risk is higher. Its better to put at least 10 percent of your salary in savings.

[oliveB]

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