Offshore

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0 height="100%"><tr> <td valign="top" width=152 BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <A HREF="id31.htm" TARGET="_top" TITLE="Investments"><U><B>Investments</B></U></A></div> <div> <A HREF="id33.htm" TARGET="_top" TITLE="ISAs"><U><B>ISAs</B></U></A></div> <div> <A HREF="id36.htm" TARGET="_top" TITLE="PEPS Transfers"><U><B>PEPS & Transfers</B></U></A></div> <div> <B>Offshore</B></div> <div> <A HREF="id40.htm" TARGET="_top" TITLE="Share dealing"><U><B>Share dealing</B></U></A></div> <bR> </td> <td valign="top" BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <FONT SIZE="4" COLOR="#993366" FACE="Arial" ><B>               F T W (IFA) Ltd</B></FONT>    |    <FONT SIZE="2" COLOR="#993366" FACE="Arial" ><B> </B><A HREF="index.htm" TARGET="_top" TITLE=" F T W (IFA) Ltd"><U><B>home</B></U></A></FONT></div> <div> <A HREF="id3.htm" TARGET="_top" TITLE="Products Services"><U><B>Products & Services</B></U></A></div> <div> <B>Offshore</B></div> <div> Offshore investment is not only for UK expatriates and foreign nationals living in UK; nor is it only for the super rich and famous. Financial products available through offshore centres are no more complex than onshore counterparts yet <B>offer major tax efficient advantages</B>. It is not true that investors can avoid paying tax by having money offshore, but the main advantages are: </div> <bR> <div> <B>Personal planning </B></div> <bR> <div> <B><IMG BORDER="0" SRC="Symb075c00b700c800000000.png" HEIGHT="13" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0"> </B><B>Capital Gains Tax -</B> CGT has to be paid onshore on investment such as unit trusts and stocks & shares. However, such investments may be held within an offshore bond with profits <B>free from CGT</B>. Further, there is <B>flexibility</B> of investment spread at anytime to match client wishes - with no CGT liability. </div> <div> <B><IMG BORDER="0" SRC="Symb075c00b700c800000000.png" HEIGHT="13" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0"> Income tax</B> - Offshore Bonds are <B>not taxed at source</B>. An income tax liability only arises <B>when</B> they are <B>encashed or if more than 5% </B>of the original investment is withdrawn in any one year. The two main advantages follow that funds grow on a <FONT SIZE="2" COLOR="#0000FF" FACE="Arial" ><A HREF="#gross_roll_up" TITLE="Offshore"><U><B><U>“gross roll up”</U></B></U></A></FONT><A HREF="#gross_roll_up" TITLE="Offshore"><U><B> </B></U></A>basis and any final tax liability may be deferred until more appropriate circumstances apply.</div> <div> <B><IMG BORDER="0" SRC="Symb075c00b700c800000000.png" HEIGHT="13" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Inheritance Tax</B> - this can be<B> mitigated</B> by the use of offshore bonds along with appropriate <B>use of trusts</B></div> <div> <B><IMG BORDER="0" SRC="Symb075c00b700c800000000.png" HEIGHT="13" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Long term care planning </B>- by using carefully selected trusts, clients can be in a position of not only reducing any impact of taxation but also<B> retain control to provide for your own long term care needs.</B></div> <bR> <div> <B>Corporate</B></div> <bR> <div> <B><IMG BORDER="0" SRC="Symb075c00b700c800000000.png" HEIGHT="13" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Deferred pension planning</B> - UK pension investment because of tax incentives and virtual tax free investment (dividend income tax credits are not repayable) remains an extremely efficient way of providing future income. However it does require long term commitment of funds. By using offshore bonds, a <B>gross investment situation </B>can be had along with the ability to use the accumulated funds at a later date to purchase suitable pension to take advantage of tax incentives</div> <div> <B><IMG BORDER="0" SRC="Symb075c00b700c800000000.png" HEIGHT="13" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Improve returns</B> - because of “gross roll up” returns on corporate investment can be improved immediately</div> <div> <B><IMG BORDER="0" SRC="Symb075c00b700c800000000.png" HEIGHT="13" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Tax deferral</B> - as offshore bonds are “non income producing assets” they may be encashed at a time to mitigate tax liabilities e.g. by making a large pension contribution a company creates a trading loss against which the bond’s gain can be offset</div> <bR> <div> <B>INVESTOR PROTECTION</B></div> <div> Some people have expressed concerns in the past over the security of offshore investment.. We only use companies that have a<B> first class rating </B>and are based in well <B>established offshore territories</B>. In particular, the Isle of Man has statutory investor protection via the Isle of Man (Compensation of Policyholders) Regulations 1991 which provides <B>compensation of up to 90% with no upper limit</B>. This is in contrast to UK Policyholders Protection Act 1975 which has an upper limit of <B>only £18,000</B>. </div> <bR> <div> <B>GROSS ROLL-UP</B></div> <div> The following chart shows the effect of gross roll-up with varying tax regimes</div> <div>  <A NAME="gross_roll_up"><IMG BORDER="0" SRC="1x1.gif" HEIGHT="1" ALIGN="bottom" WIDTH="1" HSPACE="0" VSPACE="0" ></A><IMG SRC="15a30230.gif" border=0 width="560" height="291" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> <bR> <div> <A HREF="mailto:fredw@clara.net" TARGET="_top" TITLE="mailto:fredw@clara.net"><U><B><U>e-mail us</U></B></U></A><B><U>  </U></B><FONT SIZE="2" COLOR="#000000" FACE=" Nimrod" >   </FONT><FONT SIZE="2" COLOR="#000000" FACE="Arial" >or</FONT><FONT SIZE="2" COLOR="#000000" FACE=" Nimrod" >      </FONT><A HREF="id31_invest_enquiry.htm" TARGET="_top" TITLE="Investments"><U><B><U>complete an enquiry form</U></B></U></A></div> <bR> <div> Copyright © 2001 F T W(IFA)Ltd<FONT SIZE="3" COLOR="#006600" FACE="Arial" ><B> </B></FONT></div> </td> </tr></table></body>