Offshore 'Pensions'

amelia1983

Hi All,
We have a new client who has provided us with statements for two plans, one with Fidelity and one with Zurich, both of which state that they are 'pension' savings however they are not registered pensions (UK). One has said that it is a unit-linked, defined contribution insurance contract and the Fidelity one is a Multinational Retirement Savings Plan.

I am trying to understand how these plans work especially from a tax perspective. Are these taxed as chargeable events (bond gains)? The client is currently a UK resident.

Has anyone had any experience with these type of plans and could help me understand them a bit better?

Thanks.

richallum

Hi @amelia1983 I used to work at Zurich and dealt with these. They were called Vista plans in most territories. Although they're called pensions, they're just offshore regular savings plans. Surrendering will be a chargeable gain if it's an individual plan although there may be time apportionment relief if the client was outside the UK for part of the time. There were also corporate versions of the Vista that had more complicated tax arrangements. Some were set up within a FURBS. Involving an accountant has been the best way I've dealt with them.