A-Day has presented many opportunities for the offshore market

The passing of A-Day has presented IFAs and their clients with a vast array of financial planning opportunities in the offshore market, according to Scottish Equitable International.

It believes these opportunities will give rise to an influx of individuals using offshore products as an alternative to their existing onshore retirement planning.

With an estimated year on year increase in the number of investors exceeding their lifetime pension allowance of 1.5m introduced in April this year, advisers are being urged to look at the offshore market as a tax efficient alternative for their clients.

David Healy, Managing Director for Scottish Equitable International, said: Investors affected by the lifetime allowances may or may not be aware that they can avoid these potential tax liabilities while continuing to save for their retirement by choosing a non-pension alternative.

As well as offshore bonds growing virtually tax-free, the flexibility of an estimated 20,000 investments is far greater than that found in a fund supermarket which in comparison has typically around 1,000 1,5000 investment types

Following A-Day, higher rate tax payers will be taxed at 40 per cent on annual pension contribution exceeding 100 per cent of salary or the current 215, 000 annual allowance, and 55 per cent on pension funds in excess of the current lifetime allowance of 1.5m.

This figure rises progressively to 1.8m by 2010.

Healy said: It is also suggested that 50 per cent of FTSE 100 directors and 25 per cent of FTSE 250 directors will be affected by the annual and lifetime allowances.

At Scottish Equitable International, we are well placed to help those affected, with well established products such as the Flexible Investment Plan, and the recently launched Wealth Management Portfolio.