Bruce Rae Property Management

Offshore Bonds to Expats

If you are looking to diversify your investments you could consider investing in an ‘International Investment Bond’ (IIB) with St. James’s Place Wealth Management.
Kim Threadgall, Associate Partner based in the Edinburgh office explains that they are an ideal investment for expats as income and gains are currently tax free.

‘You will avoid any liability to UK tax while non-resident and should you return to the UK, time apportionment relief will be available for gains made while outside the UK (even if withdrawals or gains are taken once you have re-established UK residence).’

Of course the tax treatment will depend on your individual circumstances and may be subject to change in the future. Some features of the IIB include:

•    No initial charge
•    Minimum investment of £15,000
•    No need to enter details of your investment on your UK Tax Return as the first 5% of your investment you withdraw each year, for 20 years, is considered return of capital and not subject to tax. Where this 5% return of capital figure is not withdrawn, it can be carried forward and used in subsequent years.
•    There will be a surrender penalty if a surrender is made in the first 5 years, or if the withdrawal taken exceeds 10% of the original policy value in the first 5 years
•    A Tax charge may be payable if over 5% of the original investment is taken

The advantage of investing with St. James’s Place is their ‘Approach to Investment Management’. St. James’s Place do not employ their own fund managers and instead outsource highly respected external Investment Managers.

Senior members of the St. James’s Place Wealth Management Group sit on the Investment Committee and they have the responsibility of selecting, monitoring and changing fund managers if necessary.

If you would like to find out more information on St. James’s Place and their products please contact Kim Threadgall at kim.threadgall@sjpp.co.uk or on +44 (0)131 459 9200.