When creating your bespoke portfolio, your investment manager will take into account any tax ‘wrappers’ that can be used to reduce your exposure to tax.
Using structures to wrap around your portfolio is a common method to ensure clients manage their tax situation in the most efficient way possible. The investment managers at Quilter Cheviot have a great deal of expertise in managing portfolios within a structure and the specific restraints that structures can impose on a portfolio. This can range from offshore bonds, using collectives or direct investments, to trusts and corporate vehicles with no-UK situs asset restrictions, offshore reporting fund requirements or capital gains limits. Also US connected (non-US resident) clients who require non-PFIC portfolios and 10-99 IRS reporting.
Also pension wrappers have increased in popularity due to tax benefits and the fact that the population is living longer and we all need to save more for our retirement.
Quilter Cheviot does not advise on the use of structures or provide tax advice but we work with many partners who do.
A SIPP is a government approved pension scheme, designed to help you save for retirement. A SIPP allows tax relief when you invest your personal pension, whilst giving you greater control over investment decisions.
Typically pensions can only be invested in a limited number of funds, however you can invest a SIPP in funds of your own choosing. This type of pension offers up to 45% tax relief on contributions, and you are also exempt from capital gains or income tax.
From the age of 55, you can start to access your SIPP either as a drawdown or as a lump sum. You can discuss this with your investment manager who will be able to guide you as to the best option to make your SIPP last throughout your retirement.
As with ISAs and SIPPs, there are tax benefits to including offshore bonds in your investment portfolio.
A UK bond is a loan to a company or government (a "gilt") which, in return, provides a fixed rate of interest.
By contrast, an offshore bond is not taxed locally, so over the long term investors can benefit from compounded income and gains.
Income within the bond will only be subject to tax upon encashment of the bond.
A benefit of having a dedicated Quilter Cheviot investment manager is that they will have a detailed understanding of your portfolio, know how best to use the incentives and allowances available, understand the impact of selling your investments and will avoid any unnecessary taxes.Why Quilter Cheviot
Come and see us so we can start working to get you closer to your personal financial goals.
A wider perspective on events and pressures affecting global politics and economics. We look at events of the last month and our expectations for the next.
Enjoy articles and infographics from our expert research team, as they discuss their predictions and the rationale behind their investment picks this month.