COPIA QNUPS Retirement Plan

Transcription

1 COPIA QNUPS Retirement Plan FEATURES AND BENEFITS COPIA COPIA Advanced COPIA Advanced Plus

2 2 COPIA QNUPS Retirement Plan Key Features and Benefits Guide COPIA Retirement Plan The COPIA Retirement Plan is an ideal way to build a retirement fund in a tax-efficient manner in order to provide benefits to you when you reach your chosen retirement age. COPIA is available to Guernsey and non-guernsey residents aged 18 or over (transfers into the Scheme can be made at any age). The Plan is aimed at individuals that require a flexible, low cost retirement plan. The Plan is a Guernsey based Retirement Annuity Trust Scheme (RATS) that qualifies as a Qualifying Non-UK Pension Scheme - QNUPS. This means that you can choose where and when you want to retire, with a level of income that meets your requirements and at an age that suits you. The Plan is approved for Guernsey Income Tax purposes and provides retirement or savings benefits for you and your Named Beneficiaries. The Plan has a flexible structure providing a high level of income, tax, estate and succession planning opportunities. The information contained in this document is based on our understanding of the current laws and practices, both of which are subject to change. Whilst every effort has been made to ensure that the information is correct we cannot accept responsibility for its interpretation, or any future changes to the laws or practices relating to Retirement Annuity Trusts in Guernsey. The Plan has a flexible structure providing a high level of income, tax, estate and succession planning opportunities

3 COPIA QNUPS Retirement Plan Key Features and Benefits Guide 3 Your Guide to COPIA Retirement Plan Why COPIA? Provides you with a flexible, tax efficient, estate and succession planning vehicle. No restriction in contribution amounts nor manner of contributions (both regular and single contributions are permitted). Domiciled in Guernsey, your plan will not become obsolete should you move between different countries of tax residence. Your plan may be denominated in, US$ or. Ideal vehicle for the acceptance of transfers from Portfolio Bonds and other products or the assignment of Portfolio Bonds to COPIA. COPIA is available to individuals over the age of 18 and under the age of 75 and is most suitable for: Individuals who want to top up their pension provision in a tax-efficient and flexible way. Individuals who have reached the lifetime allowance for tax relieved UK pensions. Individuals who have reached the annual allowance for tax relieved UK pension contributions. Individuals who are planning to move to the UK in the near future. Individuals exposed to high UK tax rates. Individuals who are either UK resident or expatriates but have retained their UK domicile status for inheritance tax. The COPIA retirement plan is not applicable to US and Canadian residents. COPIA does not accept transfers from UK schemes. Key Advantages Income and Capital gains from assets held within the COPIA retirement plan are not subject to Guernsey tax and payments from the plan are paid gross. There is no need to purchase an insurance company annuity. The annuity is linked to the assets of your plan which allows for continuity of assets after death, which may be payable to your Named Beneficiaries. A maximum loan of 30% of your plan value is available. You have freedom to choose from a wide range of investments. Competitive and cost effective pricing structure. Your plan is not subject to the EU Savings Directive. No requirement to pay contributions from employment sourced income. No requirement to purchase an annuity. No requirement to draw an income until age 75. Continued contributions allowed once drawdown has commenced. No reporting requirements to HMRC. Why Overseas Trust & Pension? Overseas Trust and Pension is regulated by the Guernsey Financial Services Commission. Overseas Trust and Pension is a specialist provider of International Pensions, Savings and Trust Solutions. Key Features and Benefits Financial Security The Plan typically falls outside of your estate On your death your plan s assets can pass to your Named Beneficiaries without going through probate or being aggregated with your estate. This may mitigate tax exposures but the tax treatment will depend on your country of tax residence and/or domicile on death. You are advised to seek independent tax advice. Tax free growth on assets within the plan. Exemption from UK Capital Gains Tax and Inheritance Tax. Lifetime Benefits enable you to structure an income using a variety of options which include: - an annuity; - an annuity certain (temporary annuity); - drawdown; - lump sum.

4 4 COPIA QNUPS Retirement Plan Key Features and Benefits Guide The Plan does not form part of your personal assets when established Assets held in an COPIA Plan are held in trust and are not owned directly by you. This may give your assets protection from creditors. Security of the Plan provider COPIA is provided by a company which is one of the largest independent trust and pensions providers in the Channel Islands giving peace of mind for you through continuity of service, product and accountability. No need to purchase an Insurance Company Annuity On your death the residual value of your plan passes to your Beneficiaries, unlike a traditional insurance annuity where any remaining assets become the property of the annuity issuer. Flexible Income Options Full flexibility on income options available to you in respect of both the level of income you require and the method and the frequency. Flexibility of Contributions Low entry level A 20,000 single one off contribution or 6,000 pa ( 500 per month). COPIA makes it easy for you to save with realistic contribution limits. This is for entry into the standard COPIA proposition, where investment is managed within a defined range of investment strategies. Contributions can be increased, reduced or stopped without penalty at any time The Plan gives you maximum flexibility and can be adapted to meet your changing circumstances. NOTE: Any life bond or fund platform minimum investment levels and minimum term will need to be respected where a life company or fund platform product is used in conjunction with COPIA. Entry level where a Life Bond investment is used is 20,000 under COPIA and 50,000 under COPIA Advanced. A Life Bond can provide access to a wide range of funds offered by third party fund managers. Portable Plan Adaptable Plan The Plan is portable and can be used for many different jurisdictions. A neutral location The Plan is domiciled in Guernsey, which means your plan is held in a stable, secure and a highly regarded jurisdiction both from a political and tax perspective. This status protects the assets of your plan should you live in or move to a country that imposes restrictions on the flow of assets across its borders, is politically unstable or has unattractive social or fiscal policies. Tailored Investments Investment Choice You have the freedom to choose from a wide range of investments. This includes: COPIA: A defined range of investment strategies directly or via life company bond. COPIA Advanced: Investments in a wide range of funds via one life company bond. COPIA Advanced Plus: Investment flexibility, including but not limited to: deposit/term accounts, discretionary investment management, investment platforms, listed/unlisted equity, investment property, life company bonds. Cash to compliment investment strategies COPIA gives you the ability to place part of your contributions into a managed cash strategy in Sterling, Euro, or US Dollars to meet liquidity requirements or a very low risk investment profile. Convenient switching of strategies and funds within your plan A plan that adapts to your changing life circumstances is key. COPIA is designed to accommodate any changes in investor profile enabling you to implement the advice received from your Professional Advisor by switching between investments and thereby ensuring that your plan s investments always remain appropriate. Additional contributions are welcome COPIA lets you make additional contributions to bolster your retirement or savings planning, minimum 1,000. Transfers from existing non-uk pensions and life products such as single premium bonds or endowment policies are welcome and easily facilitated The Plan is designed to take transfers or assignments from other providers allowing you to consolidate your retirement or saving funds/assets in one efficient structure.

5 COPIA QNUPS Retirement Plan Key Features and Benefits Guide 5 Investment Risk Care must be taken when selecting any investment as past performance is not a reliable indicator of future returns. Investment values and the income from them can go down as well as up, and may be affected by changes in rates of exchange. Investment volatility may mean that you may not receive back the amount initially invested. We advise you to seek professional investment advice before making any investment decision. Charges It is important for you to understand the impact of any charges on your investment which may include up front charges and ongoing management and administration fees. The actual level of fees payable will be determined by the investment option you select within your plan. Tax Advantages Your savings are tax efficient Income and capital gains arising from the investments held within The Plan, or benefits paid by The Plan, are not subject to Guernsey Income Tax. This means that your plan provides a tax efficient environment in which your contributions can grow. Another benefit is that assets in the plan are outside the scope of the EU Savings Directive. In addition, tax authorities internationally may treat retirement schemes, and annuity income derived from them, favourably. Typically only the income element of an annuity payment attracts income tax. This can provide further benefits and may allow wider scope for financial planning. Flexibility Before Retirement The Plan offers a Loan facility up to a maximum of 30% of the value of your plan. You can borrow lump sums from the plan before your retirement date. Any interest on the loan is paid to your plan. Cash received by way of a loan is typically not taxable, whereas income by way of a pension benefit can be. This provides added opportunity for financial and retirement planning. Loans must be repaid in full prior to any benefit being taken. Fees apply as per the published Contribution and Fee Schedule which may be amended from time to time. IMPORTANT Granting a loan from your COPIA Plan is conditional upon the satisfactory completion of a Loan Application Form. An amount equivalent to the loan or partial encashment value should be liquidated from any investments held. By signing a Loan Agreement, and providing an investment instruction, you consent to any redemption fees or charges associated with liquidating investments or assets held within the plan. It is the role of your Professional Advisor to make you aware of any early encashment charges or penalties that may apply to any underlying investments held. The long term investment performance of your COPIA plan may be adversely affected should any assets be liquidated in the short term. When considering a loan, you should always seek professional advice prior to the taking of a loan. Overseas Trust & Pension do not provide tax, financial or investment advice. You will require the advice of a Professional Adviser in this regard.

6 6 COPIA QNUPS Retirement Plan Key Features and Benefits Guide Flexibility at Retirement Select a date from which to receive benefit Your plan offers you considerable flexibility as you can select a date to commence receiving benefit. This means that from age 55 you can choose when you start to receive income from your plan, and at a rate that suits you. Income benefits must commence by the age of 75. Annuity income and capital payments The plan provides a regular income option by way of annuity or drawdown. Annuities can be for your lifetime or for a specific period between 3 and 10 years. Drawdown lets you calculate your level of income. However, the risk with drawdown is that your plan s assets may be eroded if the income drawn exceeds the investment return. Alternatively, lump sum payments are a way for you to access cash and can assist in a myriad of scenarios from paying off a mortgage to purchasing a major asset. In certain jurisdictions lump sums can be received tax free. Future Planning Estate and Succession Planning Advice obtained in a number of countries has shown that COPIA provides substantial estate and succession planning benefits. In some cases this advice has stated that assets whilst in the Plan are free of income tax, capital gains tax, wealth tax (where applicable), donations tax (where applicable), and can be passed onto successors free of any tax (e.g. inheritance tax (IHT)) and need not be taxable until the successor takes benefit. The actual benefits to you will always depend on your personal circumstances. Individual tax advice should be taken from a suitably qualified advisor. Flexibility for future generations On your death, COPIA gives the following options: To continue or start providing an income to your spouse or dependants; To segment the fund to provide different types of benefit for your various chosen Beneficiaries; Convenient Reporting Online access You can access information about your COPIA online. Annual valuations You will receive annual valuations of your plan. In addition, if you opt for a loan, the value of the loan will be reflected in the annual valuation report. IMPORTANT INFORMATION The Scheme is approved under the provisions of subsection (4) of section 157A of the Income Tax (Guernsey) Law This information should be read in conjunction with the scheme rules and Terms and Conditions Attention has been given to ensure the information contained within this document is accurate, no warranty is given as to the accuracy or completeness of any information and no liability is accepted for any errors or omissions in such information. All terms and conditions referred to in this document are subject to change at any time without notice. Please take professional advice. RISK FACTORS What you might get back will greatly depend on the investment performance of your fund. Your investments and the income derived from them can fall as well as rise and will not be guaranteed, you may get back less than you invested. Please discuss the risks with your adviser. The value of your investments will also be affected by the level of your withdrawals from the fund and charges levied. If you wish to purchase an annuity upon retirement the income you receive will be determined by the prevailing annuity rates. Benefits may be affected by fluctuations in currency exchange rates. We recommend that independent financial and tax advice is taken relevant to your individual circumstances and objectives. To transfer the proceeds into a new COPIA plan(s) for the benefit of a Named Beneficiary(ies) or to another pension or trust structure of choice; To retain The Plan (hold in trust) for distribution at a pre-defined date or future event; To wind up and pass the proceeds of the plan directly into your estate for distribution from there; and/or To wind up and pass the proceeds of The Plan directly to your chosen Beneficiaries.

7 COPIA QNUPS Retirement Plan Key Features and Benefits Guide 7 Overseas Trust and Pension Limited is licensed by the Guernsey Financial Services Commission under the Regulation of Fiduciaries, Administration Businesses and Company Directors, etc (Bailiwick of Guernsey) Law, Overseas Trust and Pension Limited is registered in Guernsey Number: Investment Notices: Front-end charges may apply. Any mention of equities and bonds should not be taken as a recommendation to invest in them. We advise you to seek professional investment advice before taking any investment decision. Past performance is not a reliable indicator of future results. Investment values and the income from them can go down as well as up, and may be affected by changes in rates of exchange. An investor may not receive back the amount initially invested. FX rates shown within your Valuation are as at the date of the transaction. For security purposes, telephone calls may be recorded.

8 Overseas Trust & Pension PO Box 285, Elizabeth House, Les Ruettes Brayes, St Peter Port, Guernsey, GY1 4LX Telephone: +44 (0) Visit: Overseas Trust and Pension Limited is licensed by the Guernsey Financial Services Commission under the Regulation of Fiduciaries, Administration Businesses and Company Directors, etc (Bailiwick of Guernsey) Law, Overseas Trust and Pension Limited is registered in Guernsey Number: 55506