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WHY OFFSHORE BONDS FOR TRUSTEE INVESTORS Gavin Jobson-Wood Investment Development Manager. For financial adviser use only. Agenda . Who’d be a trustee in 2009?. How can offshore investment bonds help?. How can we help?. Increase in taxation.
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For financial adviser use only
Who’d be a trustee in 2009?
How can offshore investment bonds help?
How can we help?
32.5% to 42.5% for dividend income
40% to 50% for all other income
Affected trusts will not benefit from the £150,000 income limit applying to individuals. (But £1000 basic rate band remains)
Increase in taxation
Every trust with an appointed adviser must have a written investment policy statement
Overall level of return and yield
Income and capital requirements
Ability to distribute capital in place of income
Nature and timing of liabilities
Time horizons of the trust
Every trust with an appointed adviser must
have a written investment policy statement
Time horizon of performance
Residency and tax status of the trust
Residency and tax status of the beneficiaries
Tax and/or legal restraints
Tax deferral possible
Limited tax administration
No CGT on switching assets
Beneficiary encashes at their tax rate
Source: Lipper Hindsight, Returns: sterling returns; Tax basis - net for IP Corporate Bond Acc and sector, gross for IP
Corporate Bond Gross Acc; Total return, no initial charges.
The value of an investment can go up and down as a result of market movements. You may get back less than you invested. Past performance is not a reliable indicator of future performance.
£500,000 investment,100% into fixed interest
Charges have been set to be equal so this is a direct comparison for tax. In reality, the total charges will vary from product to product. All products have 1% AMC (plus 0.02% assumed dealing costs) only. Investor's tax status remains the same throughout. For OEIC only one assumed CGT allowance is used at the end of the term. OEIC Charges are paid from income. Higher rate tax payments on the income from the OEIC are taken from the fund. CGT allowance grows with inflation of 2.5%.
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