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Insights.
OFFSHORE – A MARKET WITH GROWTH OPPORTUNITIES.
Help preserve your clients' wealth with our expert tax planning solutions. Our product gives you the choice and flexibility to meet the needs of a variety of clients.
Our range of Insights has been developed with you in mind to help you to identify growth opportunities within your client base. Let us help you to unlock the opportunities now.
The insights can be found below with an explanatory note on each one.
A GAIN FROM CAPITAL LOSSES
The coalition government introduced a new rate of capital gains tax (CGT) on realised gains, which came into effect on 6 April 2011. As a result of this, any clients who pay income tax at the higher rates will face an increased bill in respect of gains on collectives as well as on the investment income.
However, if the values of their collectives or directly held equities have dropped, now may be a good time to consider an alternative investment vehicle that falls outside of the CGT regime before values recover, thereby enabling gains to arise free of CGT. This insight – A Gain from Capital Losses explains how an offshore bond can be used for this purpose.
However, if the values of their collectives or directly held equities have dropped, now may be a good time to consider an alternative investment vehicle that falls outside of the CGT regime before values recover, thereby enabling gains to arise free of CGT. This insight – A Gain from Capital Losses explains how an offshore bond can be used for this purpose.
SEGMENTING OFFSHORE BONDS TO MITIGATE TAX
The ability to segment an investment bond into a number of individual policies is an attractive feature that can provide added flexibility and tax efficiency for your clients. The ability therefore, to hold up to a maximum of 99,999 policies within the International Portfolio Bond from Legal & General International can be particularly appealing from a tax planning perspective.
REDUCE A CLIENT'S INCOME TAX LIABILITY BY USING AN OFFSHORE BOND
Prepare for a less taxing time: this Insight explains how higher and additional rate tax payers can potentially reduce the amount of income tax they pay by using an offshore bond.
MULTIPLE TRUST STRATEGY
This Insight demonstrates the benefit of using a multiple trust strategy based on the Rysaffe judgement. This strategy may lessen or avoid a 10 year periodic charge and, in turn, any resulting exit charges.
THINK OFFSHORE FOR TRUSTEE INVESTORS
Think offshore for trustee investors: an offshore bond is an attractive investment vehicle for trustees of discretionary trusts, particularly when equity backed investments are being considered and there is a wish to make distributions to the beneficiaries.
THINK OFFSHORE FOR TRUSTEE INVESTORS 2
This Insight explains how an offshore bond can be an attractive investment vehicle for trustees of discretionary trusts. It addresses the technical nature of the topic by using examples and can be used in conjunction with the Tax and Trusts Profile Document Changes to the taxation of trusts.
BUDGETING FOR INCREASED TAXES
With the introduction of the new 50% income tax rate, there is now a greater need to shield your clients’ income. Although it’s not always possible for your clients to control their level of earned income, and hence their tax rate, those who have capital should consider investing in an offshore investment bond.
HIGH EARNERS AND THE REDUCED PERSONAL ALLOWANCE
Getting personal with allowances: this Insight explains how offshore bonds can provide a more tax friendly home for reinvested income for high earners. It also explains how the unique structure of an offshore bond allows for tax efficient withdrawals of up to 5% each year to be taken without affecting their personal allowances.
OFFSHORE BONDS FOR NON DOMICILED UK RESIDENTS
Think offshore for non domiciled UK residents: if a client is resident in the UK but not UK domiciled, then an offshore bond could be an attractive proposition, particularly if they have substantial foreign income or gains.
OFFSHORE BONDS AND TIME APPORTIONMENT RELIEF
Some relief from working abroad: if your clients are looking to invest and there is a chance they may spend some time working outside the UK, the potential additional tax advantages of an offshore bond should be considered.
OFFSHORE BONDS FOR SCHOOL FEES
School fees too much to bare? this Insight explains how combining an offshore bond with the ability to use a child’s personal income tax allowance could be a very tax efficient strategy when looking to make provisions for school fees.
OFFSHORE BONDS AND DISCRETIONARY TRUSTS FOR UNIVERSITY COSTS
University costs at your discretion? if your clients are looking to fund university costs for their children or grandchildren, an offshore investment bond taken out in conjunction with a discretionary trust could be a particularly attractive proposition.
OFFSHORE BONDS AND THE BENEFIT OF TOP SLICING RELIEF
Take it from the top: with the top rate of income tax at 50% and the reduction in the 40% band to £35,000 many of your clients will be keen to ensure they are utilising all possible tax allowances and reliefs. If they are looking to invest now with the intention of realising their investment when they are a lower rate taxpayer, an offshore bond is well worth considering.
OFFSHORE BONDS AND ENCASHMENT METHODS
If your clients invest in an offshore bond and decide to withdraw part of their profit they actually have the choice of how the withdrawal is to be taxed, enabling them to minimise the erosion of wealth by taxation. As we move into a higher tax environment, what could be more attractive to you and your clients?
TRUST SOLUTIONS FOR INHERITANCE TAX PLANNING
Advice that's worth inheriting: the introduction of the transferable inheritance tax threshold in 2007 coincided with falls in asset values as the recession took hold and, although asset prices have since been recovering, a view frequently taken is that inheritance tax (IHT) is no longer an issue. The truth is that for many of your clients, this will not be the case. With the inheritance tax threshold frozen at £325,000 until April 2015, more and more individuals will fall into the IHT net.
USING A WILL TRUST FOR IHT PLANNING
Where there's a Will Trust there's a way: when your clients are planning for inheritance tax the benefits of combining a Will Trust and the International Portfolio Bond from Legal & General International should be considered.
USING A LOAN SCHEME FOR IHT PLANNING
The Loan Scheme offered by Legal & General International provides those clients who require continued access to their capital, the opportunity to reduce their potential inheritance tax (IHT) liability, by making a loan to the trustees of an appropriate trust.
GIFT SCHEME FOR IHT PLANNING
The Gift Scheme offered by Legal & General International provides those clients who do not need continued access to their capital, or the income it generates, the opportunity to reduce their potential inheritance tax (IHT) liability, by making a lifetime gift into a trust.
DISCOUNTED GIFT SCHEME FOR IHT PLANNING
The Discounted Gift Scheme offered by Legal & General International provides those clients who require a fixed regular payment for life, the opportunity to reduce their potential inheritance tax (IHT) liability, by making a gift to the trustees of an appropriate discounted gift trust.
A PENSION PROBLEM SOLVED
This Insight covers the restriction of higher rate pension relief and explains how the International Portfolio Bond can act as an alternative investment to complement pensions. We also have a Questions and Answers document on recurring singles or regular top-ups.
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Key documents
Why offshore adviser brochure
PDF: 609KB
PDF: 609KB
Customer Adviser Journey
PDF: 1.02MB
PDF: 1.02MB
Customer guide to investing offshore
PDF: 1.94MB
PDF: 1.94MB
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