Offshore investment contracts grow tax-efficiently, as offshore based life assurance companies are not currently liable to any form of income or capital gains tax on policyholders’ funds (although certain investment income may be subject to a non-refundable tax deduction at source in its country of origin – ‘withholding tax’.)
Many investors find managing a portfolio of funds an administrative burden. With the Managed Capital Account, Old Mutual International takes care of this by establishing a portfolio of Old Mutual International funds within the account, and managing any paperwork on your behalf.
Normally if a particular investment is underperforming, changing strategy or fund manager may mean you suffer not only exit penalties and new initial charges on a new investment, but also a possible tax liability as well.
By choosing an Old Mutual International Managed Capital Account, you avoid this problem and can also enjoy the following benefits:
- A choice of currencies in which premiums can be paid and the account denominated (currently Sterling, US Dollar, Euro and HK Dollar);
- Flexible premium payment facilities;
- An unlimited number of switches and re-direction of funds at any time, free of Skandia administration charge;
- Easy access to your account by linking it with an offshore Lloyds TSB or Singer & Friedlander bank account;
- Availability of partial or full encashment at any time (an Early Encashment Charge may apply); and
- A loan facility, whereby you can borrow up to 50% of the bid value of your account.
- A partial surrender on your savings plan may be treated as a one-off withdrawal but you may not surrender more than the encashment (surrender) value of the plan.
Note, encashment penalties may apply for some years.
Old Mutual International Managed Capital Account Key Features
The Managed Capital Account is a redemption account which will continue for 99 years unless encashed earlier. at the end of the term the account will pay the higher of US$150 (€150/£100) or the value of the account.
Choice of Investments -
- Access to more than 40 of the world’s leading fund managers.
- Choose from around 370 international investment funds.
Minimums - Lump sum minimum of £10,000 / EURO 10,000 / $10,000
Currency – Choice of 3 currencies including Pound sterling (GBP), Euro (EUR), United States dollar (USD).
- 6% establishment charge on each investment for five years.
- 1% annual management charge.
- 1% monthly service charge on credit card payments.
- A maintenance charge of US$9.25 (€9.25/£6.15) will be taken unless either:
− the amount of the contributions paid to the account; or
− the value of the allocated units at their bid price are equal to or exceed US$15,000(€15 000/£10,000) at the transaction date.
Early encashment -
8% in the first year of each investment, reducing by 1.6% each year to 1.6% in year five and 0% thereafter.