Offshore Financial Planning
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Written by tolumi
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Friday, 05 December 2008 14:41 |
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Offshore Financial Planning Sunalliance International Financial Service’s International Pension Plan offer flexible premiums, which can be made in sterling, euros, US or Hong Kong dollars. In contrast, a tax-free stint in the Gulf is of course lucrative for pension planning and makes the tax breaks common to regular pension savings in the UK unnecessary anyway. Those with the benefit of tax-free earnings can also avoid the poor charging structures still applied to some pension products in the UK, as well as the appalling annuity rates currently on offer.
However, these residents must beware of tax liability on return to the UK. Offshore Financial Planning & Graham Robb Graham Robb, technical manager and tax-specialist at Scottish Mutual International, points out that offshore investment bonds are an ideal way to take advantage of the UK Inland Revenue’s time-apportionment rules.
This means that expatriates can avoid locking themselves into life contracts with potentially harsh exit charges if they have to return home suddenly. As Robb explains, offshore investment bonds available through financial advisers need not be sold directly on return to the UK, although tax is payable on income earned while the holder is domiciled in the UK.
Royal & Sunalliance International Financial Services also has a range of offshore-based funds, which mirror the investment allocation of regular UK-based vehicles. They can be used to invest in anything from the FTSE 100 to single stocks, and investments can be varied at no cost.
Offshore Financial Planning - Retiring Abroad When it comes to retiring abroad, expatriates have pitfalls to avoid, such as currency risk, if retirement is to take place in a third country. Providers can pay retirement income into a registered bank account in any jurisdiction, but it is as well to plan investments with the country of retirement in mind. Although retirees may find it beneficial to domicile themselves abroad for tax purposes during retirement, they could find themselves prevented from returning to the UK for longer periods to avoid tax liability. This could prove difficult if extended medical treatment is necessary, or when a spouse dies. As Robb puts it: “If someone is retiring abroad, then tax is a very important fact, but they do not want it to dictate their lifestyle.” 
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Last Updated on Tuesday, 06 January 2009 13:08 |
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