London and Colonial Flexible Life Annuity
LizziSmith
Member
Hi All
I was wondering if you may be able to provide me with some information on a product that I hadn’t really come across before.
We had a presentation from London and Colonial last week, talking to us about their Flexible Life Annuity.
From what they were saying, the way their Flexible Life Annuity is set up, it would qualify for Business Relief once held for 2 years. The reason for this is the ‘protected cell structure’ that is used within it. There is no minimum holding period and although there is no encashment or surrender value, the annuity payments can be increased to 100% of the outstanding portfolio.
The additional benefits of this compared to BR products that we recommend currently, is that it can be held on Platform and invest in a far wider range of assets.
All sounds a bit too good to be true, have you come across this type or arrangement before? Does this sound like a legitimate tax planning tool to use for clients seeking business relief qualifying investments?
Thank you
Comments
Looks like an odd product. Not something I would use as it looks very complex.
Many many many moons ago I worked for these guys - not sure about now, but Robin Ellison was a Director so had the ears of some ministers and those in DWP etc.
They tried very hard to be innovative, but sometimes this meant they flew a bit close to the sun (my opinion) in terms of legislation. They focused on more esoteric products (think QROPS, Family SIPPS etc).
But without innovation, I guess we do not get progress.
As @benjaminfabi says all sounds a bit complex - does it really need to be so?
Would like to see the technical notes on BR. We have some clients with L&C Open Annuities from early 2000's. They use the protected cell concept but there's never been any mention of BR. Not had a death yet so it's not been tested.
Paraplanner. F1, Apple, Nutella, ice cream. No trite motivational quotes. Turning a bit northern.
Here's the sheet that mentions the relief (DD and Information Pack). What do you think? I have also attached the KID for reference.
Thanks