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Benefits of investing

Why would I invest through an international jurisdiction?

Some people may think it’s complex or only for people with a lot of investment expertise. But there are many reasons why you might consider investing through an international jurisdiction such as the Isle of Man or Ireland. Your financial adviser has the necessary expertise to help you to define your needs, then recommend and impement solutions for you.

Here are just some of the things you could benefit from when investing with us.

Portability

If you live or work overseas, or are thinking of moving abroad in the future, investing through an international jurisdiction may have its benefits. For starters, it gives you the flexibility of a wealth management solution that can adapt and move with you as circumstances change. Remember though that there may be restrictions in certain countries so please check with your financial adviser.

Tax planning

For many investors, the tax benefits that an offshore investment can provide will be an important factor. Investments held within the international jurisdictions we use grow virtually free of income tax or capital gains tax. You may be liable to tax when you withdraw your money, but the impact of tax can be managed over the long term with the expertise of a financial adviser.

Things you need to consider with your financial adviser

  • Some funds may be liable to a tax known as withholding tax, which cannot be reclaimed. This tax is deducted at source, for example, from dividend income.
  • When you withdraw money, you may be liable to local taxes on any gains. However, you have control over when and how much you withdraw, and this can help reduce any tax liability. For instance, depending on your circumstances, it may be advantageous to hold off making withdrawals until you are resident in a country with a lower tax rate or when you are in a lower tax bracket.

Diversification

With products designed to work across international jurisdictions, you can enjoy significant investment freedom by spreading and varying your investments across a wide range of funds and/or assets, as you wish, according to your financial goals and attitude to risk.

By investing in one of our solutions, you can build a diversified portfolio that enables you to:

  • gain exposure to investment sectors and assets not catered for by local products
  • make the most of international growth cycles and flourishing foreign economies. You can diversify your investment across different geographical regions, ensuring your money is not subject to the investment risks of just one economy
  • access some of the world's top fund managers, making the most of their expert knowledge
  • protect yourself against potential depreciation in local currency rates and access more stable global currencies.

UK residents and expats

For UK residents and those who have lived in the UK for a period of time and may be subject to UK Inheritance tax (IHT), we offer a range of trusts which can help mitigate any potential tax liability.

Further tax benefits for UK investors

  • You can withdraw up to 5% of your initial investment free of income tax each year and defer tax payable until you have withdrawn your total investment or surrendered your investment.
  • Our UK compliant investment solutions are classed as ‘non-income producing assets’ by HM Revenue & Customs. This means there is normally no requirement to include details on self-assessment tax returns unless you decide to:
  1. cash in more than 5% of your initial investment in any one tax year, or
  2. surrender your policy.

Your financial adviser can help you explore a number of potential ways of mitigating any IHT or other tax liabilities.

Keep track of your investment

Once you’ve invested with us, you’ll want to keep track of how your investment is doing.

  • What’s its current value?
  • How are the assets performing?
  • What transactions have you or your financial adviser made?

You can do all this whenever you want through our online service, Wealth Interactive.

Investor protection

As an offshore investor, you can rest assured that all the offshore centres we work from are well regulated and secure. The more financially secure and established a company, the less chance there is of it being unable to meet its financial liabilities.

In the unlikely event that a life company becomes insolvent, investor protection schemes can act as a safety net for policyholders, allowing them to claim compensation. The availability and rules governing such schemes and specific rights for each policyholder vary from one jurisdiction to another.

For more information, download one of our investor protection guides: