Case Studies

Case-Study-Man-lump-sum

Case Study

Now in his mid-40s, this client has been an expat for 20 years and isn’t sure whether or not he will return home in the future.

With a significant lump-sum to invest, we have to consider any future tax issues from both perspectives – whether our client remains an expat or later returns home to the UK. The correct solution had to benefit the client whichever option he eventually chooses.

We recommended an offshore Executive Investment Bond to our client, which had a number of points in its favour. Firstly, if he opens the bond with the minimum investment, then it will start what is called ‘time apportionment relief’, which allows for tax to be reduced proportionately for the time spent as non-resident of the UK. Just as importantly, any additional investments will be deemed to have been made at the initial investment date, even if they are made when he is a UK resident again.


He can make full use of the offshore tax-efficiency available while he is an expatriate, but will also enjoy great tax benefits if he was ever to return home

The offshore bond also offers a long list of additional potential tax benefits, so by using one single bond, he is making full use of offshore tax-efficiency available while he is an expatriate, but will also enjoy great tax benefits if he was ever to return home.