Type: Offshore Bond
Description: Ascentric has teamed up with Royal London 360 to offer a new offshore bond on its online wrap platform.
The product provides access to a wide range of trusts, including Royal London 360’s Discounted Gift Trust that is aimed at reducing the value of an individual’s estate for inheritance tax purposes. It also offers access to funds from a variety of sectors across the market.
Fund switches within the platform are free of capital gains tax and the product will be administered on the platform’s gross nominee service. This means income is distributed on a gross basis and neither client or adviser needs to worry about reclaiming tax.
Conditions: The value of investments linked to the policy may go down as well as up. Changes to the law may affect the tax treatment of the policy or investments linked to it and reduce the amount paid back in the future. Investors may get back less than you paid in if the policy is cancelled within 30 days.
Verdict: Colin Low, director of Essex-based Kingsfleet Wealth, said: “It’s good to see new entrants into the market as that drives down prices for consumers. It’s also good to see Royal London 360 go beyond its partnership with Novia and other wraps.
“We believe offshore bonds will play a big part in our clients’ financial planning in the future. They’re incredibly useful for planning tax affairs and onshore investments will wither on the vine.
“By comparison, I think they offer restrictive fund range and they’re quite expensive to administer.”