AXA (now Phoenix) Family Sun Trust (& underlying investment)

Afternoon All

Hope everyone is safe and well.

We have taken on a client with an old AXA Family Sun Trust which holds an Utmost (formerly AXA IOM) Offshore Bond. If we look to surrender the bond within the SIPP can someone confirm how this works from a chargeable gains perspective. It has been years since I looked at a TIP.

Just wondering how any gains are charged or are there no concerns as its all within the SIPP wrapper? Also trying to fathom why an Offshore Bond was used in the first place (although I can hazard a guess). If there are no major issues surrendering we may look to go platform/collective route.

Nath

Comments

  • JonaJona Member

    My gosh - what sort of commission were AXA paying when that was set up! Is it invested in a bunch of AXA IM funds as well?

    I would have thought no tax implications on the surrender, as wrapped up in the SIPP. But that is only my opinion. Never come across that scenario before.

  • NathNath Member

    Thanks Jona.

    I saw a number of TIPs quite a few years back but first one in a while. I can't see any Chargeable Gains issues on the offshore bond as within the SIPP but couldn't find anything online. My thoughts exactly surrounding the AXA links, although not in AXA funds (or not now!!)

  • I am pretty sure there is no tax on surrender.

    We did a few of these arrangements a few years ago. It was not motivated by commission! We used a Dublin bond to avoid the VAT on the DFM portfolio; there were no initial charges for the bond and the annual charges were much less than the VAT the client would have paid on the annual discretionary fees. Can't recall what it was, but I think there was also a fee saving for using a DFM via an AXA bond so best check that before you surrender the bond....

  • Had the same as Tom. Also you have to either have Elevate as the platform or go elsewhere via the bond. They won’t allow investment directly with any other platform or custodian. So you may need to keep the bond...
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