Advice on Offshore or Portfolio Bonds

Cook_County

hongkers97 wrote: »

My Financial Advisor is De Vere & Partners, they have been pushing it for over a year....

it is a total charge of 8% (spread over 5 years I think) on the amount invested. there is then no on going chare. the selling point is:
1) tax efficiency on my return to UK (see below) - I have been non resident for 13 years but may go back at some point.
2) Access to institutional investment

The tax position was stated as follows:

1) 5% allowance - UK Inland Revenue allows 5% of orignal capital to be moved back to uk as an allowance each year
2) time apportionment relief
GROSS GAIN x No days onshore/no of days since policy inception = NET GAIN

tax is paid on NET GAIN

3) top slicing relief. (calculation based on not being higher rate tax payer in UK0.

My question is
A) In the event that I move back to the UK is this better than investing in a standard Unit trust or increasing regualr savings in my skandia/Friends provident etc scheme
What is the benefit of accessing institutional funds - De Vere seems to be indicatng that it basic access as I would not be able to access the funds otherwise (such as a DB Alpha fund)....no mention was made of lower costs

Any thoughts most welcome

Fascinating, but what is the tax position in the country where you are currently resident?

hongkers97

I am a Hong Kong Permenant Resident likely to retire in Thailand.. I dont think that there is any capital gains tax in HK & no taxes would be applied in Thailand on the money I brought into the country (but I do need to confirm).

My problem is that I am considering moving back to the UK for a time to let my children experience life in UK.

Not sure that the Bond is worthwhile if I was not moving back to UK.. trying to work out whether it is worthwhile if I do move back for a while.

17clarence

Hi Hongkers,
take a look here ; http://forums.moneysavingexpert.com/showthread.html?t=39586
and http://forums.moneysavingexpert.com/showthread.html?t=1730177
and even http://www.englishforum.ch/finance-banking-taxation/4000-churchill-partners-spam-phone-call.html

They will try to get you to sign up to a 15 year policy I suspect. Get the calculator out ( or look on the internet for compound interest calculators ) and work out exactly how much the charges are. Then do it after tax, I expect the difference/risk trade off is not worth it. Make sure you read all the policies as there will be a fee for the wrapper, the ongoing yearly charges, the commision etc. I nearly got scammed by these people, I backed out when I realised neither myself nor the salesman ( they are NOT financial advisors ) could actually do the maths. I worked out a break even calculation after 8 years ! 8 years of handing over £500 a month, before you actually have the same money you have paid in! All countries are tightening tax loopholes, and this well known scheme will be one of the first to go.
Remember, the returns and perceived benefits are not certain, but the charges are.
On a more positive note, in the UK you can invest in an ISA £9600 a year, so if you're heading back plough your money into this instead. Someone like Standard Life charge about 0.5% on a tracker fund.
Tax free returns, but you may need to declare them if you end up living outside the UK.
When investing your hard earned cash, the knack is not making brilliant choices, but avoiding making disasterous ones!
Good luck!

Cook_County

If you don't wrap it in a bond don't you get a better tax answer then?

hongkers97

I already have a scheme with insurance company (i think along the lines raised by 17Clarence). I put money regularly into the scheme and can choose from a reasonable range of funds from around the world (they are actually mirror funds for the original funds). I can move between funds at any time at dont pay the fund entry fee (the bid/offer spread). The tax breaks are the same as the portfolio bond (see earlier post) in the event that I return to the UK.. the downsides are the entry charge, the annual charges by the insurance company and the fact that I am locked in for a period (though I can take out with a penalty)...Just starting to revew the fees etc based upon the feedback...

The portfolio Bond is different & is a wrapper. Minimum investments are USD50K, There is effectively a charge on all money going in (roughly 6-8% of initial investment taken over 5 years) + UKP90 per year... There is a real lack of clarity on the benefits of using this wrapper. (worryingly i ask questions then the sales position changes) but the stated benefits are as follows:

1) It enjoys the same tax position as my regular savings
2) It helps manage inheritance tax issues (if only I was that rich)
3) I can access certain funds that are only normally available to insitutional investors - such as certain structured products - or at least can invest at a lower amount (e.g. USD25K rather than 50K)...

Really not sure how useful the tax protection is.. in HK where I am a permenant resident no taxes apply on profits from investments so it does not help whilst I am here...but if i move to the UK then it may be good..

Like the idea of investing in ISA even though I am not in the UK at the moment.. also thinking of trading directly in shares.. oir maybe just keeping money in the bank till things get better,,,

Bit of a ramble.. but takes some thinking about..

RJ.MacReady

Does anyone here know anyone who works for deVere?

What are the views of people here of deVere, and deVere employees they have met?

Does anyone get the impression that deVere salesmen have to be 'aggressive', or are they quite intelligent and consultative with the way they do things?

iain2305

I have been approached today by DeVere & Partners after applying to them for a Job, i have been asked to go to one of 2 dates in London to find out about them and if i would like to work as a sales co-ordinator i have arranged that i can have a 1-2-1 interview on the day. I am currently a phone based salesman and although they pay commission only i have been advised that they pay halgf your rent and for your flight out there. They look perfectly legitimate and have some very prominent business partners and i am confused as to if they are so dodgy why these companies would associate with them. Anyone that has worked for them's input would be greatly appreciated

dunstonh

You are going to be a sales co-ordinator. What qualifications in financial services do you have?

whiteflag_3

dunstonh wrote: »

You are going to be a sales co-ordinator. What qualifications in financial services do you have?

your an IFA dunstonh , what qualifications do you have?

0182jm

dunstonh wrote: »

You are going to be a sales co-ordinator. What qualifications in financial services do you have?

Would he need any? If he's going purely as a sales co-ordinator then the role is to generate possible leads like outbound sales jobs in the UK?