Safeguard Assets with an International Portfolio Bond

Protect Your Assets When Returning to the UK

What is an International Portfolio Bond? Portfolio Bonds can be used as international savings platforms for those living outside of the UK and are a method of keeping your liquid assets in one simple account. Using an IPB can have many benefits, including tax-efficient withdrawals, gross returns, and Trust wrapped succession planning.

How Do International Portfolio Bonds Work?

IPB’s are designed to be used easily by individuals who have built liquid wealth and care about protecting it from unnecessary tax. The expatriate investor, you, transfers selected liquid wealth to be consolidated as one into a contract of insurance, or tax-wrapper. From here, the IPB can be utilised and adapted to suit the different stages of the investor’s lifetime due to its flexible options of additional premiums, regular income, lump sum withdrawals and trust planning.

Why Use an IPB?

An International Portfolio Bond can help secure a tax-free income stream for years to come. Perhaps you are reaching an age where you are planning a return to the UK and want to ensure your assets are protected from avoidable UK Taxation laws. By using an IPB, the investor can enjoy the benefits of regular withdrawals from their liquid assets within a tax-efficient structure, while the assets inside the bond continue to grow and be managed as usual.

If you have accrued a wide range of financial assets, such as cash, mutual funds, shares or bonds, the ability to appoint a professional fund advisor within an administratively simple platform creates a level of financial security which provides huge benefits.

The advantages of this include:

Gross Benefits

Unlike directly held investments, which may be subject to immediate taxation, the portfolio bond acts as a wrapper around liquid assets. Here, the assets usually grow in value without annual tax deductions to the investor, providing compounding gross returns not achievable with direct investment.

Tax-Efficient Withdrawals

For future UK residents, once your liquid assets have been consolidated into the IPB, it is possible to withdraw the original invested capital at a maximum rate of 5% per annum without any tax liability. This figure is cumulative and if not used one year will roll over to the next. As a result, you can receive an effectively tax-free income, until 100% of your capital has been withdrawn, whilst your remaining assets continue to grow within the bond.

Trust

Placing an IPB into Trust creates several benefits. After 7 years of having placed the Portfolio Bond within an appropriate Trust, the value of the assets will usually be removed from your estate and your beneficiaries can enjoy a reduction in estate tax. Even on returning to the UK, an IPB wrapped in such a Trust avoids being subject to Inheritance Tax. This allows you, the investor, to pass on wealth efficiently and use the structure of the Trust to manage your assets in an appropriate manner and plan succession with certainty.

Book a consultation with us and find out more about International Portfolio Bonds here.