Private Wealth Portfolio

Private Wealth Portfolio offers the following additional benefits:

Exceptional tax efficiency 

  • Life policies are defined as non-income producing for UK tax purposes. This means that UK residents do not have to pay Income Tax or Capital Gains Tax on income or gains accrued by the assets in their Private Wealth Portfolio policy.
  • Tax on income from your policy is deferred until you make a partial or full surrender.
  • You can withdraw up to 5% of the premiums you pay each year and defer paying tax until the policy is fully surrendered. This 5% allowance can be accumulated annually, allowing you to withdraw a larger amount in the future.
  • If you make a full or partial surrender you can avail of various reliefs to further reduce your tax liability.
  • You or your advisor can plan how and when to make surrenders to maximise the tax reliefs available.

Residence planning 

If you are UK Resident Non-Domiciled with sources of substantial overseas income, you should consider a Private Wealth Portfolio policy before or shortly after you arrive in the UK. You can avail of the following additional benefits:

  • In the first seven years of UK residency, all your non-UK income and gains are not taxed unless you want to remit them to the UK.
  • After this period you can still avail of the above tax-deferred benefits, but to do so you must pay an annual Remittance Basis Charge. Alternatively you can pay tax on an Arising Basis.
  • Private Wealth Portfolio allows you to select the Arising Basis which means you only pay tax on a chargeable event (e.g. surrender of the policy). Therefore you don’t need to pay the Remittance Basis charge each year.
  • You may also benefit from accessing the cumulative annual 5% allowance.
  • There are no further annual reporting requirements for assets held within the Private Wealth Portfolio unless a chargeable gain is triggered.
  • In many cases Private Wealth Portfolio will continue to offer you tax deferral and possibly attract further benefits if you move to another country or return to your home country.

Currency choice 

You can choose the currency of your investment in either Euro, US Dollar, Swiss Franc or Pound Sterling. The total initial premium into the plan is GBP 500,000 or equivalent in these currencies.

The information provided is based on our understanding as at 30th May 2016. Fees and charges apply. There may be a delay in processing surrender payments where the investment portfolio contains illiquid investments. You should discuss the taxes, fees and charges applicable to Private Wealth Portfolio with your financial advisor before you apply for this product. Your financial advisor will provide you with the guidance and advice that you need to make Private Wealth Portfolio work effectively for you.