Why use Offshore Investment instruments?
One of the main
reasons you may wish to invest offshore is the potential
tax saving. By using trusts with offshore
investment bonds you could reduce your liability to inheritance
tax, income tax and/or capital gains tax.
Why would I benefit from an Offshore Investment?
Almost anyone can benefit from the greater returns to
be derived from offshore investments simply by choosing
to invest offshore rather than onshore. But to benefit
from the low individual tax regimes available offshore,
one of two things has to be true. Either you must have
residence offshore, or, if you live in a high-tax area,
there must be an offshore structure which distances offshore
gains from the onshore tax regime.
How can I find out more?
There is no doubt that offshore investing is becoming
more popular. Contact Us to ask for more information about
offshore investing.
The Financial Services Authority does not regulate tax
planning or offshore investments. When investing offshore
you may not be afforded the same protection given to investors
investing in UK-based investments.
Equity-based investments in particular are intended as
medium to long term investments (usually considered to
be five years or more). Because they are equity-based,
they are dependent on stock market movements. It also
means your capital is not usually guaranteed to be safe
and so you may lose some or all of it.
If the investment is a unit-linked one, its value can
reduce in direct relation to the stock
market prices of
its underlying assets, although it can also rise. This
means you may not get back all the money you invested.
If it is a with-profit arrangement, there is not the same
direct link between the underlying assets and the value
of your policy. This is because the insurance company
holds back some profit from good years to offset losses
in poor ones – this is referred to as smoothing.
The provider cannot withdraw any reversionary bonuses
declared, although your early withdrawal may result in
a Market Value Adjustment – effectively a financial ‘penalty'.
Levels and bases of, and reliefs from, taxation are subject
to change and any tax reliefs referred to are the current
ones and their value will depend on the circumstances
of the individual investor.
Hedgelands Financial Services Ltd, Hedgelands, Abbotskerswell, Newton
Abbot, TQ12 5PW
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Telephone
0845
165 1280
General Insurance
0845 165 1281
Fax
01626 332622
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