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According to recent research by Legal & General, almost a third (30.1 per cent) of advisers said they were already recommending offshore bonds for clients.

A similar number (29.4 per cent) said they anticipated recommending offshore bonds in the coming 12 months.

Six out of 10 advisers (58.8 per cent) said that a growing awareness of the potential uses for offshore bonds in IHT and non-domicle tax planning had driven the strong performance of the offshore bond market over recent months.

David Fagan, chief executive officer of Legal & General International (Ireland), said: "We have seen a growing demand for offshore bonds being recommended for IHT planning over the last year boosted by two key drivers.

"Firstly the trend in the UK towards an increasingly ageing population that allows people to accumulate wealth over a longer period of time is creating a growing number of working and retired individuals with surprisingly healthy liquid assets.

"Secondly, the continuing public debate about Inheritance Tax in the media throughout last year has put estate planning on more clients’ radar despite the recent fall in house prices and introduction of the transferable nil rate band.

"It is no surprise therefore that, in a separate study at the end of last year, our research has revealed that IFAs are finding themselves increasingly involved in IHT advice as their client age profile is increasing.

"We believe that this trend is gathering momentum in 2009 as we see more 'mass affluent' consumers realising that they need to seek advice to plan and manage their tax, estate and wealth."