Moving/Retiring Abroad Briefcase

• To ensure the investment is fully "portable"
• To minimise any tax liability
• To maximise investment potential
• To ensure flexible access

Based on a client aged 60, retiring abroad in five years' time.

• Client invests £100,000 in International Prudence Bond
• Left to grow for 5 years - no tax liability on client and only withholding tax within funds
• Bond now worth £127,628 (5% p.a. net growth)
• Client retires abroad and becomes non-UK resident for tax purposes - keeps the bond and can add to it at any time
• Can choose Euro or US Dollar denominated funds to match or complement local currency
• Future investment growth continues to be free of any tax except withholding tax
• Can make withdrawals or cash in the bond with no UK tax liability (although there may be a tax liability in the new location)
• Top-ups, withdrawals and cash-in proceeds can be paid in any of a range of currencies to suit the client's location
• If the client decides to return to the UK and still has the bond, time apportionment relief will reduce any tax when it is cashed in

• No tax except withholding tax paid within funds - onshore bonds have tax deducted at source which cannot be reclaimed or used to offset tax in another country - see the difference with our offshore v onshore bonds calculator; UK collective would incur tax on income-producing funds while client is in the UK - see the difference
• Investing in Euro or US Dollar funds could help avoid currency risk on cashing in
• Time apportionment relief is not available for onshore bonds or collectives
• No CGT on switches while a UK taxpayer
• No UK tax on gain if cashed in abroad and away one complete tax year; CGT would be payable on a UK collective if the client returns within five complete tax years