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Financial advisory firm John Lamb Hill Oldridge has announced the formation of a specialised team to support advisers and clients in navigating the complexities of Insurance Based Investment Products (IBIPs).
The initiative comes in response to the recent changes in Capital Gains Tax (CGT) rules and the proposed reforms of the “non-dom” regime, which have impacted high net worth individuals.
The firm has observed a marked increase in the demand for IBIPs, commonly known as “offshore bonds”. This surge is attributed to freezes and reductions in Income Tax and CGT thresholds and allowances, as well as rising administrative costs associated with asset management.
Ken Maxwell, director at John Lamb Hill Oldridge, said: “While we’ve never stopped advising on offshore bonds, demand in recent years has been low. However, reduced CGT allowances and proposed changes to the non-dom rules have left clients and advisers in an uncertain position over the future taxation position of non-doms worldwide.
“Collaborating closely with a network of advisers, we ensure seamless integration, offering support to other professionals and acting as part of an advisory team for the benefit of our clients.”
An offshore IBIP is a strategic tax arrangement designed to improve tax efficiency by allowing the gross roll-up of both Income Tax and CGT. Clients can withdraw up to 5% of the initial investment value annually without immediate Income Tax liability, making the structure effective for up to 20 years at this rate, and up to 40 years at a 2.5% withdrawal rate.
The team at John Lamb Hill Oldridge will not offer an investment proposition, leaving this to the client’s existing investment managers. Instead, the focus will be on providing highly technical advice and support, tailored to the needs of high net worth individuals.
Maxwell added: “Our team is composed of highly technical advisers who are adept at handling the complexities associated with high net worth and ultra high net worth clients.
“With a deep understanding of the unique requirements and sophisticated needs of this clientele, we are committed to delivering exceptional service and tailored solutions that align with their financial needs and objectives.”
