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Tax Planning for High Earning Executives (HMRC Approved!)

capital* www.capital.co.uk Tax planning for high earning Insurance and Reinsurance Executives – offshore investing (approved by HMRC) Offshore investment could help high earners legitimately protect their capital from the taxman in a number of ways. Offshore investment - investing in an offshore tax structure, known as an investment bond, domiciled in a different If you're earning over £100,000 a year, high tax rates are a major drain country - is a highly effective way of reducing many different on your resources. tax liabilities. By offshore, we don't mean far flung tax havens like the Cayman Islands, but more prosaic tax efficient centres like Dublin and the Isle of Man. As exotic and exciting as offshore accounts sound, most providers are household name UK investment and life assurance companies using their offshore subsidiary company. These products are fully HMRC-approved. Find out more... Go offshore As long as there is a life assured on the offshore investment bond you won't normally pay any tax on growth. Tax can be deferred until money is taken out of the bond and will be based on your circumstances at that time; for example, you may wish to draw in retirement, when you are no longer a high rate taxpayer. 3: 5% 25% International bonds have an annual 5% allowance that you can For example, if no withdrawals are made in the first four years, take out of the offshore investment each year 25% of the amount invested can and defer any tax due be taken in year five without until a later date. This triggering a tax charge. allowance can be carried forward to a future year Source: Fidelity if you have not used it. Nothing to Declare Tax only becomes payable if. You exceed the 5% allowance of the original You sell your bond. offshore investment, for each year it's been running The bond comes to You cash the bond in and an end because the make a profit. life assured dies. Keep it in the Family If your partner is a non-taxpayer it can be tax-efficient to have an offshore investment in their name. Also, if the bond is assigned to your partner, or children, inheritance tax on your own estate may be avoided. Careful tax planning meant 250,278 estates for year of death 2009-10 were fully mitigated against tax 38,144 of these were for estates worth between £500,000 and £2 million source: HMRC, July 2012 If you put the offshore bond in a specific type of trust, it may be possible to remove it, as well as all investment growth, from your estate, and so save a 40% tax charge. Sources: Prudential Fidelity Your 'to do' list Don't Take Protect pay tax on growth 5% a year without your family from being taxed inheritance tax. capital What is Intelligent Investing? Download our free eGuide What is Intelligent Investing? now! Disclaimer We try to ensure that the information provided is correct, but wedo not give anyexpress or implied warranty as to its accuracy. We do not accept any liablity for errorsoromissions. We arenot liable for any damages (including, without limitation, damages for loss of business or loss of profits) arising in relation to the information provided or from any action or decision taken as a result of using the information or website links. The information provided does not constitute financial or other professional advice You should consult a professional adviser if you require financial advice. The materials provide links to other sites We do not control the linked sites and are not responsible for the contents of anylinked site or any link in a linked site, or any changes or updates to such sites. We provide these links to you only as a convenience, andthe inclusion of any link does not implyour endorsement of the site. OCapital Asset Management 2013 Some information has been provided by third parties. We are not responsible for anyerror, omission or inaccuracy in the material لبا بيا

Tax Planning for High Earning Executives (HMRC Approved!)

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Offshore investment could help high earners legitimately protect their capital from the taxman in a number of ways.

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