Wealth Structuring

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Various structures and products can allow for tax-efficient investment returns. For an overview of specifically tax-favoured investments, please see the Tax Efficient Investments page. There are, however, other structures and products which can provide for a positive tax outcome.

There are of course a myriad of investment products on the market, and our team can help to guide you through the maze to find a tax-efficient opportunity. Typically, these are “wrappers” which allow for a deferral of a tax charge, as opposed to an outright tax reduction.

Some common examples are:

  • Offshore insurance bonds
    • Can provide for a deferral of capital gains tax, income tax and corporation tax on investment returns
    • Allow gradual withdrawal of original capital tax-free over time
    • Possible to hold the bond via an offshore company to further improve the tax outcome
    • Despite the introduction of the Personal Portfolio Bonds regime, it is still possible to hold highly personalised investments within these tax efficient wrappers, including private company shares and options.
  • Family Investment Company (“FIC”)
    • Generate family income tax efficiently
    • Cap tax at Corporate Tax Rates
    • Gift assets to family members, but retain an element of control.
  • Special Purpose Vehicle for property investment
    • Rental income subject to Corporate Tax Rates
    • Mortgage interest payments deducted from rental profits
    • Shares can be easily transferred if you plan to gift property to family members
  • Trusts
    • Gift assets to family members, but retain an element of control.
    • Potentially reduce the value of your estate for Inheritance Tax purposes by making use of IHT exemptions are reliefs
    • Can be used to provide for children’s school and/or university fees

An offshore trust may be particularly attractive option for a non-UK domiciled individual, and please click for more detail on Offshore Trusts.

We are not ourselves registered with the Financial Services Authority to conduct regulated business. We therefore have no interest in earning the highest commission from the sales of investment products.

We will work with your Independent Financial Advisor or we can introduce you to an IFA we have worked with in the past who can take care of the FSA aspects. However, our focus is on ensuring that any investment strategy or wrapper you may select, meets with your overall financial and taxation objectives.

Please contact us to speak to one of our advisers.