Tax Efficient Planning

Tax Efficient Planning

An effective way to grow your capital is to first understand your current position.
Did you know that accurately understanding all the tax ramifications on incomes or gains can immediately boost your portfolio’s position? Those that are not informed may miss out on key products and services to maximise their capital such as offshore accounts

Education Fee Planning

Your children’s education could be the best investment you'll ever make.

Retirement Planning

It's never too early to start planning for your retirement.

Succession Planning

‘Death Tax’ on assets you have already paid tax on is simply unfair.


It's never to early to start considering your pension fund.

Lump Sum Solutions

Unlike regular savings vehicles, investing large amounts of capital is about timing.

Tax Efficient Planning

One of the greatest advantages of placing money in offshore banks or investments is the potential tax efficiency offered by these international jurisdictions. Depending on where you live, income and growth in an offshore account or investment may not be subject to tax in your country of residence.

Here are some of the ways that your money can become more tax efficient when living overseas.

Choose a Tax Efficient Jurisdiction

When planning how to invest your excess income, always seek a financial adviser with with thorough knowledge of the global markets along with a comprehensive overview and understanding of all ‘offshore’ options available. This is where I and the NEBA group come in.

As an expatriate, you are in a privileged position to maximise your wealth and secure your financial future while living overseas. You have the potential to save in 3 to 5 years what an average investor may save throughout their entire working life by simply considering some of the options available to you such as:

• Taking advantage of your offshore earnings and invest over the short, medium or long-term.
• Taking advantage of the many offshore tax-friendly possibilities.
• Using your time overseas wisely.

Furthermore, you are legally entitled to take advantage of any tax-savings offered in your country of residence.

Tax Efficient Investing

There are a several ways to invest in a tax-efficient manner. Portfolio bonds are the most obvious example. A portfolio bond is a simple holding structure for a wide range of investment vehicles such as stocks, shares, bonds and funds. It provides a flexible solution for your investments and usually offers greater tax efficiency.

Key features include:
• Convenience of holding all assets in one portfolio.
• Significant initial discounts from fund management groups.
• Opportunity for greater tax efficiency.
• Ability to transfer existing share holdings into one portfolio.
• Greater investment freedom.
• Flexibility to change your investment portfolio at any time.
• Easy access to your capital.
• Regular income facility.
• Control of the assets while losing the legal title of the assets.

A portfolio bond gives you access to a full range of investment vehicles and enables you to have all assets handled by professional asset managers. In certain jurisdictions, portfolio bonds are 100% free of local taxes.

There are also numerous other ways to gain tax efficiency when investing your money.
For instance, when investing in stocks, adopting the buy and hold strategy, lessens the tax your profits are subjected to the longer you hold on-to that stock. If you hold the stock short-term, usually less than a year, you will be taxed at the highest rate. However, if you hold on to your stock long-term, you will only be taxed at the lowest rate of capital gains tax which is 18% UK, 15% US.

Inheritance Tax (IHT)

Inheritance Tax is paid on somebody’s estate when they pass away and is also on the gift into trusts made during that person’s lifetime. Typically, it is the executor’s or deceased representative’s responsibility to pay inheritance tax using funds from the deceased’s estate.
Usually, inheritance tax is only due if the deceased’s estate is worth £325,000 (UK) or more, or £650,000 (UK)
for married couples and civil partnerships. The estate includes houses, valuable possessions, money and investments.

Sometimes, even if the estate exceeds the threshold, assets are still eligible to be passed on without having to pay inheritance tax.

These exemptions mean that:

• Your estate will not be subject to Inheritance Tax or on anything you leave to a spouse or civil partner, who is UK domiciled.
• Any gifts you make to a UK registered charity will be exempt from the Inheritance Tax.
• If you survive for seven years after making a gift to someone, the gift is exempt from Inheritance Tax, no matter what the value is.
• You can give up to £3,000 away each year, either as a single gift or as several gifts adding up to that amount.
• You can make small gifts of up to £250 to as many individuals as you like, tax free.

Tax Efficient Pensions

If you transfer your UK pension into a UK SIPP or a  QROPS scheme based in another jurisdiction and plan to retire abroad permanently, then the benefits will help you live your retirement years in greater freedom and happiness.

The major advantages of transferring your pension include:
• Your pension income becomes more tax efficient .
• You are entitled to a tax-free lump sum of up to 30%.
• Greater investment freedom with the flexibility of investing in a wider range of funds and investments.
• All unused pension funds can be left to your beneficiaries upon your death.

For pension payments to be more tax efficient, or free of some taxes, it is more beneficial to transfer your pension into a UK SIPP or QROPS scheme in a neutral location, such as Malta or Gibraltar.

If you choose to transfer your pension into a QROPS fund in another country, then you will have to weigh up all the political and currency risks that will affect the value of your pension in the future. Further information can be found in our QROPS guide.

Finding Your Tax Efficient Solution

Making your money work harder for you while remaining tax-efficient can be a complicated process to get involved in.

Our consultants work with some of the leading investment houses and insurance providers.

All of our employees have been trained to provide the best advice and they are familiar with the local knowledge and requirements of the region you live in/may relocate to.

We can advise on the different options that may help you maximise your wealth, for you to look forward to a more secure financial future.

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