Professional Documents
Culture Documents
Client Guide
Investing offshore
Why offshore investing can work for you.
See page 4
Fund choice
Where can you invest your money.
Structure
A quick run down of the main features of the Premiere Account.
See page 6
See page 10
ADVISER
INTERNATIONAL
ADVISER
INTERNATIONAL
ADVISER
INTERNATIONAL
Offshore Bonds
Introducing the Canada Life International Premiere Account and Premiere Discounted Trust Account
The reason for investing offshore has not changed since offshore centres were first established; the ability to invest and benefit from growth in a more beneficial tax environment than your country of residence. The underlying funds in the Premiere and Premiere Discounted Trust Accounts grow virtually free of tax (they may suffer some withholding taxes on any UK dividends). By contrast, UK life assurance funds have to pay tax at a rate of 20% on both income and gains. The favourable tax treatment of an offshore investment means that your investment can enjoy the potential for higher returns as tax usually only becomes an issue as money is withdrawn. The Premiere Account (the policy) is designed to provide a tax efficient vehicle through which you can obtain capital growth, virtually free of tax. It can also be used to supplement your income by allowing tax-deferred withdrawals. For an individual who has built up a substantial amount of capital in the UK or who is UK domiciled, inheritance tax (IHT) can be a major issue, and for this situation we offer the Premiere Discounted Trust Account (the Account). A Premiere Account is wrapped in a specifically designed trust allowing you to pass assets to your chosen beneficiaries, whilst continuing to take an income from your investments. There are two trusts available, Discretionary Trust and Bare Trust. IHT is a complex area and you should discuss this with your professional adviser before taking any action. The Premiere Account comes in two versions : Alpha providing a wide range of investment solutions, and estate planning options including the Premiere Alpha Discounted Trusts Omega designed specifically for non-UK residents and also offers access to direct holdings of some stocks and shares
The Premiere Account can be held in sterling, US dollars or euro and may be suitable for investors: Who have at least 100,000 to invest Who want the tax efficiency of an offshore investment Who are prepared to accept some risk to their investment Who want access to the widest range of investment options including niche and specialist investments Who want access to Discretionary Fund Management In addition to the above, the Premiere Discounted Gift Trust Account may be suitable for investors seeking to : Reduce or mitigate UK inheritance tax Gift capital to their chosen beneficiaries whilst retaining an income Retain an element of control over the destiny of capital You also have the peace of mind of knowing that your CLI policy will be protected by the Isle of Man Life Assurance (Compensation for Policyholders) Regulations 1991 in the unlikely event that it becomes unable to meet its responsibilities.
Depending on how your Premiere Account is set up, either you, the trustees or the nominated fund adviser will be able to instruct us to switch from one fund to another at any time. Instructions received in writing by 4.30pm local time (we cannot accept switch instructions by e-mail) will be actioned on the next available dealing day. There is a transaction charge for each buying or selling of a fund holding. Fund adviser You, or the trustees can manage your portfolio of funds, or you can nominate a suitably authorised fund adviser or discretionary fund manager, allowing them to make the investment decisions on your behalf.
Structure
Type of policy The Premiere Account is an offshore single premium life assurance policy issued by Canada Life International Limited. Currency The Premiere Account can be denominated in sterling, US Dollars or euro. Residency The Premiere Alpha Account and Premiere Alpha Discounted Trust is available to UK residents only. The Premiere Omega Account is available to non-UK residents. Policyholder age limits The minimum age for both the Premiere Account and the Premiere Discounted Trust Account is 18. The maximum age for the Premiere Account is 89. The maximum age for the Premiere Discounted Trust Account is 89. Life assured The maximum age for the youngest life is: 79 for a Premiere Account. 79 for a Premiere Discounted Trust Account. Minimum/Maximum investment The minimum premium is: 100,000 for a Premiere Account. 100,000 for a Premiere Discounted Trust Account. There is no maximum. Top ups Additional amounts may be added to Premiere Account at any time, subject to a minimum of 5,000. You cannot make any further payments to a Premiere Discounted Trust Account. Segmentation For added flexibility the Premiere Account is set up as a number of identical sub-policies. This may help with your tax planning on encashment. Next steps This guide has been designed to give you information on the features of the Premiere Account and Premiere Discounted Trust Account in some detail. However, additional important information is also contained in the Key Features document and your personal illustration. If you have further questions, please speak to your professional adviser. Please note that past performance is not a guide to the future. The value of units can fall as well as rise. Currency fluctuations can also affect performance. The information regarding taxation is based on our understanding of current legislation, which may be altered and depends on the individual circumstances of the investor.
You can contact us at: Address Adviser Support Team Canada Life International Limited Canada Life House Alexandra Road Castletown Isle of Man IM9 1TG +44 (0) 1624 820299 +44 (0) 1624 820398 adviser.support @ canadalifeint.com www.canadalifeint.com
Canada Life International Limited, the Premiere Account and the Premiere Discounted Trust Account offer you the flexibility, support and service to meet your changing needs.
Canada Life International Limited, Canada Life House, Alexandra Road, Castletown, Isle of Man IM9 1TG Telephone: +44 (0) 1624 820200 Fax: +44 (0) 1624 820201 www.canadalifeint.com Registered in the Isle of Man No. 33178. Member of the Association of International Life Offices. Canada Life group consists of Canada Life Limited, Canada Life Asset Management Limited (both authorised and regulated by the Financial Services Authority), Canada Life International Limited and CLI Institutional Limited (Isle of Man registered companies authorised and regulated by the Isle of Man Insurance and Pensions Authority). All promotional material produced is approved by Canada Life Limited.
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