Investing Offshore: The Benefits and Considerations with Standard Life International

Offshore Investing: A Way to Grow Your Money

Offshore bonds can be a tax-efficient way to plan for your future and grow your money over the medium to long term.

Standard Life International Offers Flexibility and Control

Standard Life International offers a wide range of investments, giving you the flexibility to shape your bond around your current and future goals. Switching your investment is also free of charge, allowing you to make your International Bond work for you.

Understanding Your Options and Risks

Before making a decision, it’s important to understand the different options available to you and the risks and commitments associated with each. Standard Life International offers two options for the International Bond: the Capital Redemption or Life Assurance basis.

Offshore Investing is Accessible to Many

Contrary to popular belief, offshore investing is not only for the wealthy. As long as you have a lump sum of £20,000 or more to invest or make recurrent single payments of at least £1,000 each month by direct debit, an Offshore Bond may have many advantages for you.

Regulated Offshore Investing

Modern offshore centers like Ireland are regulated, and life offices based in Ireland are authorized and regulated by the Central Bank of Ireland, ensuring the company has enough assets to cover its responsibilities to policyholders.

When to Consider an Offshore Bond

A Tax-Efficient Way to Save for the Future

Offshore bonds can offer tax advantages for those looking for a tax-efficient way to save for the future, planning to move or retire abroad, or have used up their pension allowance.

Planning for Inheritance Tax and Gifting Money

Offshore bonds can also be a tax-efficient way to plan for your future if you’re thinking about protecting your estate against inheritance tax or planning to gift money to your family or friends.

Standard Life International’s Offshore Bonds

Flexibility, Choice, and Control

Standard Life International’s offshore bonds offer a range of features that provide flexibility, choice, and control to investors.

Life Assurance or Capital Redemption Basis

You can set up your bond on a Life Assurance or Capital Redemption basis, and regardless of which you choose, you can make withdrawals or surrender your bond at any time, subject to the terms of the relevant Key Features document and Policy Provisions.

Offshore Investing with Standard Life International

Potential for Growth and Tax-Efficient Management

Investing offshore with Standard Life International provides investors with the ability to plan for their financial future. Offshore bonds offer the potential for medium- to long-term growth, as well as a tax-efficient means of managing funds.

Wide Range of Investment Options

With a wide range of investment options available, investors can choose from a variety of funds, discretionary investment managers, deposit accounts, structured deposit accounts, and the Elevate General Investment Account.

Flexibility and Control

Investors can switch between investments with ease, and there is no tax to pay when doing so, though certain types of investments may carry a switching charge. Offshore investing is often tax-efficient, as investors are not required to pay tax on any growth while they are invested in the bond. Instead, tax is paid when the money is withdrawn.

Life Assurance Basis

If investors choose to set up their bond on a Life Assurance basis, any tax liability will be based on their tax position at the time of the last surviving life assured’s death. This provides the potential for investors who may currently be higher or additional rate taxpayers to invest in a bond and pay tax at a later time when they may be in a lower tax bracket.

Withholding Tax

One exception to the tax benefits of offshore investing is that certain investment funds may charge a withholding tax, which is a tax deducted by some countries from dividends and interest payments. It may not always be possible to reclaim this tax.

Withdrawal Options

The flexibility of Standard Life International’s offshore investment bond is further enhanced by the option to withdraw money when it suits you. You can withdraw up to 5% of the total amount you’ve paid into your bond each year for up to 20 years, and defer paying tax until later. If you don’t use your 5% allowance in a given year, you can carry it forward to a future year. However, if you take more than 5% from your bond each year, you may incur a tax charge.

Gifting Money

Moreover, Standard Life International’s offshore investment bond offers extra control when taking or gifting money. The bond is made up of identical segments, allowing you to take or gift money from your bond in a tax-efficient manner. If you assign segments of your bond to an adult child or grandchild, you may be able to reduce the tax paid on it.

Lifetime Allowance and Annual Allowance

Investing a lump sum offshore could have tax advantages for you, especially if you have used up your lifetime allowance or are a high earner. The potential for higher returns from the way investments in bond are taxed is a significant advantage of offshore investments. Additionally, you can take your money out or move it between a wide choice of investment options, giving you greater flexibility and control over your money.

Inheritance Tax Planning

If you’re looking for a tax-efficient way to plan around inheritance tax, an offshore bond can help you give someone money while retaining some control over the money while you’re living. It’s important to get expert advice on all your options to protect your estate and avoid IHT, but investing offshore and putting it into a trust could be a viable solution.

Inheritance Tax Allowance

Everyone is allowed to leave up to £325,000 when they die without being charged any inheritance tax (IHT), and you may also be able to leave up to another £175,000

Investing in a Bond and Putting It into a Trust

Reducing or Avoiding IHT Liability

A bond can be put into a trust, which can be an effective way to reduce or even avoid IHT liability. If you live for at least seven years after you put your investment in trust, the amount you invest may not be included in your estate for IHT purposes, and any growth on the bond will be outside your estate. However, IHT may be payable when the trust is set up and once it is running, depending on the type of trust used and the investment value.

Acting as a Trustee and Retaining Control Over the Money

By investing in a bond and putting it into a trust for your family, you can act as a trustee and retain some control over the money. As a trustee, you’re the legal owner of the investment, held for the benefit of your family or friends. Depending on the type of trust you choose, you can decide how much can be withdrawn from the investment and when.

Providing Financial Assistance to Your Family or Friends

The bond can be a tax-efficient way to provide financial assistance to your family or friends for a variety of purposes, such as paying for school or university fees, planning a wedding, saving for a new baby, or buying a new home. With up to 9,999 segments available with Standard Life, you can gift money from your bond tax-efficiently by assigning segments to someone else. Each segment can be treated differently, allowing the owner to choose a different investment and withdrawal strategy for each one to match their goals.

Offshore Investing with Standard Life International

A Reliable and Trustworthy Company for Offshore Investing

Standard Life International is a reliable and trustworthy company for offshore investing. As an Irish life assurance company, they are wholly owned by the Phoenix Group and are authorised and regulated by the Central Bank of Ireland. They are also regulated by the Jersey Financial Services Commission for long-term insurance business in Jersey. Their Dublin base means they are governed by robust regulatory requirements, such as the EU Solvency II Directive, which requires strong capital reserves and transparent reporting.

The International Bond

Standard Life strives to make offshore investing simple, providing one point of contact and expert support. Their International Bond offers a wide range of investments and switching options, with no tax charge to pay. You can take out up to 5% of your investment each year tax-free.

In conclusion, investing offshore with Standard Life International can provide investors with a practical and tax-efficient way to plan for their financial future.

Offshore bonds offer the potential for medium- to long-term growth, and with a wide range of investment options available, investors can choose from various funds, discretionary investment managers, deposit accounts, structured deposit accounts, and the Elevate General Investment Account.

The flexibility of Standard Life International offshore investment bond is enhanced by the option to withdraw money tax-efficiently when it suits you, and the ability to gift money in a tax-efficient manner.

Furthermore, by investing in a bond and putting it into a trust, you can potentially reduce or avoid inheritance tax liability while retaining control over the money.

With a reliable and trustworthy company like Standard Life International, investors can have peace of mind knowing their investments are in good hands. Overall, offshore investing can be a practical and down-to-earth

Are you looking to diversify your portfolio and reduce your tax liability? Consider these top ten offshore bonds for 2023.

Get Rich Quick: 7 Cannabis Stocks That Could Make You a Millionaire as Legalization Sweeps Across the Globe!”