Give Me Shelter

Offshore Structures

Offshore structures are perfect for a number of reasons, especially for those people who are expatriates. In this modern age, overseas workers tend to be mobile and end up working here there and everywhere, rather than being permanently rooted in a single country. Then, there are the issues of returning to one’s homeland, where financial issues and taxation become major issues in planning and orchestrating one’s hard earned savings.

Why Use Offshore Structures?

  • Flexibility – Ability to design a structure that meets your individual investment needs. Offshore structures allow freedom to invest in asset classes traditionally only available to institutional investors
  • Tax Planning – Offshore structures are free from Income Tax and Capital Gains Tax at source
  • Confidentiality – Total confidentiality
  • Security – Assets held in arguably the most secure offshore jurisdictions

Personalised Portfolio Bonds are tax free warehouses for your worldwide asset holdings. They have been available since 1978, with many of the major European insurance companies setting up offshore subsidiaries to market investment products to the international investor. By combining the tried and tested administration systems of the insurance companies, with their tax-exempt status, the Personal Portfolio Bond (PPB) was created.

In layman’s terms, it is a tax free warehouse vehicle which actually has nothing to do with paying for unwanted life assurance. Expatriates and all international investors alike can find good lodgings for many types of assets within these offshore structures.

Assets Acceptable within PPBs include Stocks and Shares, cash, Unit Trusts, Mutual Funds, Investment Trusts, Real Estate, and Private Company Shares. The offshore shelter can assist investors increase their returns, attain discounts, gain tax exemptions, and lower administration costs, as well as obtain confidentiality and security under a single umbrella, all with instant access.

Problems versus Solutions

  1. Administration
  • Problem: Keeping track of your investments, particularly while overseas is a frustrating and time-consuming process. The costs of monitoring even a modest portfolio are considerable.
  • Solution: Once you establish a PPB, all administration is carried out by the insurance company who produce itemized quarterly statements. 24 hour online access to your account
  1. Charges
  • Problem: When investing in unit trusts, equities or bonds, a commission or fee will be levied which can often be as high as 7%.
  • Solution: All transactions that take place within the PPB are carried out by the insurance company, and therefore attract institutional discounts. These discounts are passed on to you thereby offsetting the PPB charges and enhancing the portfolio performance.
  1. Confidentiality
  • Problem: This is extremely important as many clients do not wish to broadcast their financial situation. It is essential in countries that have high levels of taxation (USA), exchange controls (Singapore) or a high incidence of other ownership issues.
  • Solution: Once the PPB has been established the assets are domiciled in an offshore centre where the insurance companies are prohibited by law from divulging client identity. Disclosure of the assets held within the PPB is entirely at your discretion.
  1. Accessibility
  • Problem: With the exemption of instant access deposits all other investments are by their very nature less liquid. Where a traditional structure - such as an offshore company or trust - is used, the process is further delayed and additional costs incurred.
  • Solution: The PPB allows access to the underlying assets at any time. Funds can be remitted in any major currency to just about anywhere in the world. For instant access a bank account and debit card can be linked to the PPB.
  1. Leveraging
  • Problem: From time to time, a particular short term cash flow problem may occur, be it an unforeseen liability or a particularly attractive investment opportunity. Traditional structures often impose penalties such as loss of interest for early withdrawal.
  • Solution: The PPB allows access to the underlying assets at any time. Funds can be remitted in any major currency to just about anywhere in the world. For instant access a bank account and debit card can be linked to the PPB.

 

Why Do I Need An Insurance Policy?

While the structure is set up as a life assurance policy, you are not paying for unwanted life assurance. The level of cover is simply 101% of the value of the underlying assets. However, by using a life assurance company you benefit from:

  • The insurance company’s tax exempt status
  • Legislative Protection and Security
  • And all other features previously mentioned.

The Private Portfolio Bond is an executive product that is well worth the effort in setting up, and it is totally portable as you work here there and everywhere. Take shelter and secure your investment assets under the single umbrella of a PPB.