The common characteristics of offshore investment are low or no taxes afforded by their jurisdiction and different regulatory regime in comparison with an onshore counterpart.
La Mondiale Europartner is licensed by the FSA in the UK.
The offshore investment solutions, governed by Luxembourg legislation, comply with UK regulatory requirements.
Benefits include Gross Roll-Up, Time Apportionment Relief and Top Slicing Relief with unsurpassed confidentiality and investor protection.
The main advantage of offshore bonds is tax planning - funds held within an offshore wrapper are not taxed locally or at source
- the funds grow without any liability to UK income tax - 'gross roll-up'
- income of 5% a year can still be taken each year without any immediate liability to tax
- with an onshore bond, from a client's perspective, the funds for income and capital gains are taxed at 20% year on year
| | Consequently tax can be deferred and paid prior to leaving
the UK, or in the new country of residence, should a more
favourable tax regime exist. Gross Roll Up
where moving savings out of a tax jurisdiction, i.e. to an overseas location such as Luxembourg, these assets can grow and without being taxed are more likely to outperform investments at home.
Gains or income are liable to tax in Britain only when they are brought back to the UK. For those moving abroad for work or to live permanently, potential tax advantages are
greater still.
Time Apportionment Relief this is a benefit for any client, non-resident or likely to be non-resident while owning such an asset.
If the policyholder is non-resident outside the UK for a given period of time, say 45% of the period since the policy commenced, any chargeable gain would be reduced by this percentage. This relief is unique to the offshore market and is not available for onshore bonds. |
