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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.
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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CMI Insurance Company Limited, Clerical Medical House, Victoria Road, Douglas, Isle of Man IM99
1LT, British Isles. Registered No. 33520, Isle of Man. Telephone: +44 (0)1624 638888. Fax: +44 (0)1624 625900.
Approved by Clerical Medical Financial Services Limited, 33 Old Broad Street, London EC2N 1HZ. Registered No.
Clerical Medical Financial Services Limited is authorised and regulated by the Financial Services Authority.
Financial Services Authority rules are made under the Financial Services and Markets Act 2000 for the protection of
investors and apply to investment business conducted in or from the UK. Holders of policies issued by the company
will not be protected by the Financial Services Compensation Scheme if the company becomes unable to meet its
liabilities to them. CMI Insurance Company Limited is supervised by the Isle of Man Insurance and Pensions Authority
and its policyholders receive the protection of the Life Assurance (Compensation of Policyholders) Regulations 1991.
This presentation is aimed at financial adviser only. If you reproduce any part of this information to use with retail
clients, you must ensure it conforms to the Financial Promotions rules. In addition, if used to advise retail clients, you
are subject to the advising and selling rules. This information is based on our understanding of current legislation and
Revenue practice, which is subject to change. Full details are available from CMI Insurance Company Ltd on request.