Offshore Case Study

Our client approached us looking for offshore investment advice. A British citizen, she had been living abroad for the last 35 years, and had no plans to return to the UK. We discussed the merits of investing offshore to avoid any liability to UK Income and Capital Gains Tax, as well as potentially avoiding UK inheritance tax, providing the HMRC (Inland Revenue) accept her non-UK domicile status.

Our client's father had recently passed away, leaving her a substantial sum of money. She wanted both capital growth and the flexibility to draw a regular income when needed. She was also keen to invest ethically where possible. While the ethical investment sector is developing quickly, the size of the market is still relatively modest, and performance is variable. However, we were able to create a balanced and diverse portfolio of suitable socially responsible investment funds.

The client wanted to adopt a medium risk approach. This meant she was willing to invest a reasonable proportion in equities to achieve a potentially higher return over the medium to long-term, but in conjunction with other asset classes such as property, gilts and other fixed interest investments.

Our client knew that as she got older, she would want to take less risk. As she is self-employed, her earnings fluctuate, so it was important to build flexibility into her investment strategy to accommodate her change in circumstances.

The solution was an offshore investment bond. It offers access to an extensive range of funds from across the globe, provides the flexibility for a regular monthly income to supplement her earnings when required, and all with the potential for capital growth. And perhaps most importantly for the client, the investment also meets her ethical standards.