Tailored solutions. Family Office Conference

Transcription

1 Tailored solutions Family Office Conference

2 Efficient use of insurance products Offshore bonds Bespoke life funds Policy ownership Offshore life assurance Benefit for non-doms Financial security Page 2

3 Efficient investing Offshore bonds Single premium life assurance contract Multiple lives assured Minimal death benefit Non-income producing asset All income accumulated in the fund No tax in the fund, but Withholding tax cannot be offset or credited Page 3

4 Offshore bond investments Typical investments Collectives Unit trusts Open ended investment companies Cash deposits Managed portfolio of funds Constrained investment approach Limited to investment philosophy of others Administration Running multiple portfolios under similar mandates Bespoke life funds Wider investments Keep to pre-agreed mandates Simplified administration Page 4

5 Bespoke life funds Background Legislation introduced in 1999 Permissible assets Collective investments Unit trust Open ended investment companies Approved investment trusts Cash Breach of regulations 15% assumed gain each year Compounding Administration Run by insurance company working with the wealth manager Cost saving Page 5

6 Example Family office / trust Father Mother Son Daughter Portfolio Portfolio Portfolio Portfolio Bespoke life fund 1 Bespoke life fund 2 Bespoke life fund 4 Bespoke life fund 3 Bespoke life fund 5 Bespoke life fund 6 Bespoke life fund 7 Page 6

7 Ownership of an offshore bond The family office or investment company Jurisdiction The client Trusts Various tax advantages in holding life assurance policies personally Succession planning Dealing with the UK inheritance tax problem Absolute trust Discretionary trust Life assurance Page 7

8 Offshore life assurance UK Inheritance tax liability Residency Domicile Non-domicile Deemed domicile Exemptions and nil rate band 40% over 325,000 Property ownership Corporate ownership Annual tax on enveloped dwellings Stamp duty land tax Personal ownership Capital gains tax Private residence relief Page 8

9 Offshore life assurance Whole of life cover Lump sum available to beneficiaries on death Use of a suitable trust Jurisdiction of provider UK provider Remittance basis 30,000 7 out of 9 years 50, out of 14 years Non-UK provider Unremitted income Page 9

10 Choice of jurisdiction Isle of Man Ireland Others Isle of Man Life Assurance (Compensation of Policyholders) Regulations 1991 if a company unable to meet liabilities, compensation scheme would meet 90% of value Ring-fenced subsidiary investment-linked policies only Individual fund assets not covered by the regulations No policyholder protection scheme - reliant on UK scheme Manage risk within the company VAT advantage on DFM fees Financial ratings Page 10

11 Important information This presentation is for consideration by professional advisers only and is not intended for communication to the general public. It is based on Canada Life s understanding of applicable legislation as at (May 2015) which may be altered and depends on the individual financial and other circumstances of the investor. It is not intended to be tax or investment advice. Past performance is not a guide for the future. The value of units can fall as well as rise. Currency fluctuations can also affect performance. Canada Life International Limited, registered in the Isle of Man no Registered office: Canada Life House, Isle of Man Business Park, Douglas, Isle of Man IM2 2QJ. Telephone: +44 (0) Fax: +44 (0) Member of the Association of International Life Offices. CLI Institutional Limited, registered in the Isle of Man no C. Registered office: Canada Life House, Isle of Man Business Park, Douglas, Isle of Man IM2 2QJ. Telephone: +44 (0) Fax: +44 (0) Member of the Association of International Life Offices. Canada Life International Assurance Limited, registered in Ireland no Registered office: Irish Life Centre, Lower Abbey Street, Dublin 1. Telephone: Member of the Association of International Life Offices. Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Insurance and Pensions Authority. Canada Life International Assurance Limited is authorised and regulated by the Central Bank of Ireland. ID7036 expiry June 2016 Page 11

12 Providing first class offshore solutions