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Guide to Tax Efficient Planning Guide to Tax Efficient Planning N Over the last decade more and more professionals from all walks of life are finding themselves working and living abroad. As an expatriate your specific financial objectives and requirements may require specialist adviser knowledge and training as every region of the world comes with its own set of advantages and disadvantages to contend with. An understanding of offshore financial services and products can help provide you with the kind of life that you and your family deserve along with the security of knowing that your investments are working as hard as you are. Offshore investment is no longer reserved only for the wealthy the international market has opened for all expats living abroad who wish to enjoy the flexibility and accessibility of overseas accounts. Never before has the demand been greater and the financial industry has responded in turn with more and more financial institutions offering options to the international investor. The choice of provider is thus wider than ever- with services ranging from lump sum investments and saving schemes to pension plans and wealth management accounts. Chartercross works in conjunction with the worlds leading insurance providers and investment firms. It is these powerful relationships with the top players in the industry that ensure every product offered by Chartercross is of the best value to the investor and comes backed by the highest level of protection. In this guide well show you how you can take advantage of living overseas to help make your money become more tax efficient. There are several jurisdictions that have become popular in recent years following the change to QROPS rules in 2012. Malta for example is chief among them- as it has a wide network of double tax treaties it is a member of the EU as well as being well-regulated. When considering how best to approach the investment of your surplus income it is vital that you speak with a financial professional who has an understanding of your onshore as well as offshore options. As an expat you live globally so you need to have a global view when it comes to investment. Your status as an expatriate may place you in a privileged position to save for your future. You may find that you are able to accumulate wealth much more quickly and efficiently than you would if you were still living in your home county by taking advantage of the options your expat status affords you. Using your time overseas wisely and taking advantage of the offshore tax friendly possibilities can allow you to maximise your earnings. One of the great advantages of living overseas is the legal entitlement to tax savings in the country where you now reside. TAX EFFICIENT INVESTING Guide to Tax Efficient Planning Tax efficient investing takes on many guises. One of the most well-known and popular is by utilising a portfolio bond. A portfolio bond is a holding structure for several types of investments like stocks bonds funds etc.. By holding your investments in a portfolio bond you can usually ensure that they are being treated in the most tax efficient manner possible. Here are some of the key features Greater tax efficiency Wider range of investment choice and freedom Control of assets while losing legal title of assets Discounts from fund management groups Ease and convenience of holding all assets together in one portfolio Ability to move existing holdings into portfolio Flexibility to change portfolio at any time Access to capital Ability to take regular income Not only does a portfolio bond grant you access to a full range of investment vehicles but it also allows you to have your assets looked after by teams of professional asset managers. In some jurisdictions portfolio bonds are held completely free of local taxes. INHERITANCE TAX IHT IHT is the tax liability on your estate that must be paid upon your death. This tax also extends to some gifts made during your lifetime and is usually payable by the executor or personal representative. If the value of your estate is above 325000 your estate will owe 40 on anything above that threshold when you die and is to be paid out of funds from the estate of the deceased. For married couples the threshold is 650000. The term estate refers to possessions homes property money and investments. There are some instances in which your estate can be passed on without paying IHT even if the value of the estate is above the threshold. Some of these exemptions include Assets passed on to your spouse or civil partner provided that they are also UK domiciled Any gifts given more than seven years before your death. Such gifts are exempt from IHT irrespective of their value. Gifts of 250 or less are free of tax to a maximum of 3000 Gifts to UK registered charities Wedding gifts of up to 5000 to your child and their partner Here are some of the main benefits of transferring your UK pension into a QROPS Ability to take benefits from age 55 65 in the UK Currency flexibility only GBP in the UK Tax efficiency Much wider range of choice and freedom of investment The ability to pass on the full amount of funds to beneficiaries upon death only 50 in UK Income taxed at a lower rate if you decide to move back to the UK In order for you to take advantage of the tax efficiency of a QROPS- it is important that you choose a neutral jurisdiction in which to transfer your UK pensions. Malta and Gibraltar are popular choices. For further information please consult our QROPS guide. Guide to Tax Efficient Planning OBTAIN FINANCIAL ADVICE Getting your money to work in the most tax efficient manner possible can be a complicated matter- it is important to get the help and advice of a professional who understands the process. The time is now to begin planning. At Chartercross we work with the worlds leading investment houses and insurance providers. Our consultants have all been trained to give the best advice and have an understanding of the local requirements of the region you plan to move to. ABOUT CHARTERCROSS We understand that every client is an individual so our approach is to help find products and solutions that are tailored to fit your unique circumstances and goals. Chartercross is a whole of market advisory and not tied to any one individual life company so we are free to offer the best advice on products from any provider. Thus our fully qualified consultants and Wealth Managers are able to provide not only accurate but Simple Impartial Advice. The advice we provide is free and without obligation. All opinions expressed in this Guide constitute the authors own judgment as of the date of the Guide. Please note that as we have only indicated the general position and whilst every effort has been made to ensure the accuracy of the information we can accept no responsibility for any act or failure to act based upon its content. The views expressed herein are purely those of Chartercross employees and are not to be construed as advice. This material is for information purposes only and does not contain and should not be construed as containing investment advice or an investment recommendation or an offer of or solicitation for a transaction in any financial instrument. Always seek independent financial advice before investing in any product. The information provided and contained in this brochure are believed to reliable but are subject to change without notice and Chartercross makes no representation as to the completeness or accuracy of the information or of any opinions expressed.