Skip to main content
  • 0131 441 2288
  • admin@retsol-llp.co.uk
HOME
  • Home
  • About Us
  • How We Work
  • Our Team
  • Testimonials
  • Privacy Policy
  • Contact Us
HOME
  • Home
  • About Us
  • How We Work
  • Our Team
  • Testimonials
  • Privacy Policy
  • Contact Us
Select category
  • Financial Planning
  • Wealth Management
    • Introduction to Wealth Management
    • Relationship Management
    • Power of Attorney
    • Trust Information
    • Wills
  • Pensions
    • Introduction to Pensions
    • National Employment Savings Trust (NEST)
    • Occupational Pensions / Auto Enrolment
    • SSAS
    • SIPP
    • Executive Pension Plan
    • State Pension
    • Annuities
    • Stakeholder
    • Personal
  • Savings & Investments
    • Introduction to Savings & Investments
    • Unit Trusts
    • Collectives
    • Equities
    • With-profits
    • Fixed Interest Investments
    • Capital Investment Bonds
    • National Savings Products
    • ISAs
    • Junior ISAs
    • OEICs
    • Investment Trusts
    • Offshore Collectives
  • Life Assurance
    • Introduction to Life Assurance
    • Investment Linked
    • Whole of Life
    • Family Income Benefit
    • Convertible Term
    • Renewable Term
    • Increasing Term
    • Decreasing Term
    • Level Term
  • Business Insurance
    • Introduction to Business Insurance
    • Pensions & Capital
    • Keyperson
    • Employers' Liability
    • Professional Indemnity
    • Income Protection
    • Share Protection
    • Directors' & Staff Benefits
  • Health Insurance
    • Introduction to Health Insurance
    • Private Medical
    • Critical Illness
    • Income Protection
  • Taxation
    • Introduction to Taxation
    • Capital Gains Tax
    • Income Tax
    • Inheritance Tax
  • Market Data
  • Research Links
  • Financial Planning
  • Wealth Management
    • Introduction to Wealth Management
    • Relationship Management
    • Power of Attorney
    • Trust Information
    • Wills
  • Pensions
    • Introduction to Pensions
    • National Employment Savings Trust (NEST)
    • Occupational Pensions / Auto Enrolment
    • SSAS
    • SIPP
    • Executive Pension Plan
    • State Pension
    • Annuities
    • Stakeholder
    • Personal
  • Savings & Investments
    • Introduction to Savings & Investments
    • Unit Trusts
    • Collectives
    • Equities
    • With-profits
    • Fixed Interest Investments
    • Capital Investment Bonds
    • National Savings Products
    • ISAs
    • Junior ISAs
    • OEICs
    • Investment Trusts
    • Offshore Collectives
  • Life Assurance
    • Introduction to Life Assurance
    • Investment Linked
    • Whole of Life
    • Family Income Benefit
    • Convertible Term
    • Renewable Term
    • Increasing Term
    • Decreasing Term
    • Level Term
  • Business Insurance
    • Introduction to Business Insurance
    • Pensions & Capital
    • Keyperson
    • Employers' Liability
    • Professional Indemnity
    • Income Protection
    • Share Protection
    • Directors' & Staff Benefits
  • Health Insurance
    • Introduction to Health Insurance
    • Private Medical
    • Critical Illness
    • Income Protection
  • Taxation
    • Introduction to Taxation
    • Capital Gains Tax
    • Income Tax
    • Inheritance Tax
  • Market Data
  • Research Links
  • Home
  • >
  • Offshore Collectives

Offshore Collectives

Investing in Offshore Collective Funds

Offshore investment vehicles include unit trusts, mutual funds or investment companies, and may be open or closed. The offshore company normally pays no tax on its income or gains. However, the income it receives may be subject to withholding tax, which the company will not be able to reclaim. For the policyholder, all gains are fully taxable at the time of encashment.

Risk & Reward

Offshore funds can offer greater returns and often greater risks than onshore funds, however many countries restrict investment in such funds by their citizens, and also restrictions are placed on the marketing of offshore funds to their citizens. The UK's regime, whilst permissive, is still not very flexible. The laws and regulations of high-tax countries in respect of offshore funds are directed not just to limiting the behaviour of their citizens but also to preventing 'money-laundering' and other illicit uses of International Offshore Financial Centres (IOFCs).

Financial Conduct Authority Recognised Funds

These are funds which, although managed overseas, are permitted to market themselves directly to UK private investors. Having the 'Financial Conduct Authority Recognised' tag simply means that the UK authorities acknowledge the regulatory regime in the overseas territory is of a standard at least as 'good' as in the UK.

There may however still be higher risk funds which the Financial Conduct Authority doesn't recognise even though they are based in territories with 'good' regulatory regimes.

OFFSHORE COLLECTIVES ARE COMPLEX INVESTMENTS AND ARE NOT SUITABLE FOR EVERYONE, YOU SHOULD SEEK FINANCIAL ADVICE BEFORE ENTERING INTO THIS TYPE OF INVESTMENT.

INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM TAXATION, ARE SUBJECT TO CHANGE.

THE VALUE OF INVESTMENTS AND THE INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.

Offshore Collectives

Investing in Offshore Collective Funds

Offshore investment vehicles include unit trusts, mutual funds or investment companies, and may be open or closed. The offshore company normally pays no tax on its income or gains. However, the income it receives may be subject to withholding tax, which the company will not be able to reclaim. For the policyholder, all gains are fully taxable at the time of encashment.

Risk & Reward

Offshore funds can offer greater returns and often greater risks than onshore funds, however many countries restrict investment in such funds by their citizens, and also restrictions are placed on the marketing of offshore funds to their citizens. The UK's regime, whilst permissive, is still not very flexible. The laws and regulations of high-tax countries in respect of offshore funds are directed not just to limiting the behaviour of their citizens but also to preventing 'money-laundering' and other illicit uses of International Offshore Financial Centres (IOFCs).

Financial Conduct Authority Recognised Funds

These are funds which, although managed overseas, are permitted to market themselves directly to UK private investors. Having the 'Financial Conduct Authority Recognised' tag simply means that the UK authorities acknowledge the regulatory regime in the overseas territory is of a standard at least as 'good' as in the UK.

There may however still be higher risk funds which the Financial Conduct Authority doesn't recognise even though they are based in territories with 'good' regulatory regimes.

OFFSHORE COLLECTIVES ARE COMPLEX INVESTMENTS AND ARE NOT SUITABLE FOR EVERYONE, YOU SHOULD SEEK FINANCIAL ADVICE BEFORE ENTERING INTO THIS TYPE OF INVESTMENT.

INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM TAXATION, ARE SUBJECT TO CHANGE.

THE VALUE OF INVESTMENTS AND THE INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.

Read less

Company address: Retsol Financial Services LLP, 30 Spylaw Street, Edinburgh, Scotland, EH13 0JT T: 0131 441 2288 E: admin@retsol-llp.co.uk

Registered office address: 30 Spylaw Street, Colinton, Edinburgh, EH13 0JT.

Retsol Financial Services LLP is a limited liability partnership and an appointed representative of TenetConnect Ltd which is authorised and regulated by the Financial Conduct Authority. Retsol Financial Services LLP is registered in Scotland under reference SO301235.

TenetConnect Ltd is entered on the Financial Services Register (www.fca.org.uk/register) under reference 149826.

© Copyright 2021 Adviser Pro. All Rights Reserved

Design and Development by Adviser Pro