In recent months, many high net worth individuals and families will have found themselves affected by changes to the Capital Gains Tax (CGT) rules and proposed reforms of the “non-dom” regime.
To help advisers and their clients provide expert advice and maximise tax efficiency for these clients, John Lamb Hill Oldridge has launched a dedicated team to advise on the initial placement and ongoing suitability of Insurance Based Investment Products (IBIPs).
Demand for these products – often simplified to “offshore bonds” – has increased sharply in recent months. Reasons include freezes and reductions to Income Tax and CGT thresholds and allowances, and the increased admin costs associated with holding assets.
To help advisers and clients find the most appropriate structure for their needs, John Lamb Hill Oldridge, often considered the UK’s leading broker for high-profile and high net worth individuals, now offers a dedicated service providing advice for the placement of IBIPs and the ongoing suitability of the product and provider.
Commenting on this new service, Ken Maxwell, director at John Lamb Hill Oldridge, says: “While we’ve never stopped advising on offshore bonds, demand in recent years has been low. However,
reduced CGT allowances and proposed changes to the non-dom rules have left clients and advisers in an uncertain position over the future taxation position of non-doms worldwide.
“Collaborating closely with a network of advisers, we ensure seamless integration, offering support to other professionals and acting as part of an advisory team for the benefit of our clients.”
Enabling tax-efficient income for clients
An offshore IBIP is a tax arrangement for investments which improves tax efficiency by facilitating the gross roll-up of both Income Tax and CGT. It allows clients to withdraw up to 5% of the initial investment value each year without an immediate Income Tax liability. At 5% the structure is effective for 20 years and at 2.5% for 40 years.
The dedicated John Lamb Hill Oldridge team do not have an investment proposition, as this remains with the client’s existing investment managers.
Ken adds: “Our team is composed of highly technical advisers who are adept at handling the complexities associated with high net worth and ultra high net worth clients.
“With a deep understanding of the unique requirements and sophisticated needs of this clientele, we are committed to delivering exceptional service and tailored solutions that align with their financial needs and objectives.”
Providing truly bespoke advice to every client, the dedicated team will:
- Explore solutions with a client and their advisers free of charge and with no obligation.
- Assess suitable providers, conducting comprehensive analyses of the financial protection and regulatory frameworks within various offshore jurisdictions to ensure optimal placement for the client.
- Conduct full money laundering checks including source of wealth and source of funds.
- Prepare a full recommendation for the client covering the suitability of the structure and provider based on their key objectives.
The team will also schedule an annual review meeting to comprehensively assess performance, address any concerns, and make necessary adjustments. They will also review withdrawals to ensure maximum tax efficiency.
As well as providing dedicated assistance, the John Lamb Hill Oldridge experts also offer a training module available for professional firms looking for technical support.
