Zurich Offshore savings plan

timblowers

Hi all,

Has anyone got experience of reviewing an existing plan for a client know as a Zurich Offshore Savings Plan.

It's one that an employer contributed towards whilst the client was overseas, but now they're back in the UK looking to potentially make withdrawals.

The provider doesn't state what type of category it falls into but based on the T&Cs, it appears to be an offshore non-qualifying policy, just can't get the provider to confirm this or if the potential tax he would face would be indeed be income tax (or capital gains tax).

Thanks

richallum

is it a VISTA plan?

timblowers

No, it's called Magnus on the information (Plan information and T&Cs)

AlysonBrooker

I think I dealt with one of these a while ago, Tim, and Zurich wasn't very forthcoming with the information then either. I believe in that case it was treated as an offshore bond BUT the premiums were paid by the client themselves not their employer.

If the investments were made or held in a foreign currency, you'll have to take that into account in the tax calcs too (i.e exchange rates). 

Presumably, any taxable benefit given by the employer investing on the client's behalf would have been taken into account when the investments were made so it could potentially be looked at as an ordinary offshore bond as if the client had made the investments themselves. Time Apportionment Relief may be available but remember that top slicing relief is likely to be restricted to the years the client was in the UK.

Also, caveat that they should check with an accountant! 

timblowers

Thanks Alyson.

To complicate it slightly further, it was looked at by his accountant when he also had a previous adviser (which I believe was a corporate adviser to the scheme) who surmised that it was assessable against capital gains tax.

Will have to go back and see if the client can possibly get any more from the corporate adviser and possibly a second accountant's viewpoint.

richallum

@timblowers Magnus is the GPP version of the Vista.  I used to work at Zurich and set a few of these up.  We now work with an adviser who has several clients with them and in turn use an accountant that is very familiar with them and does the tax calcs for people returning to the UK wanting to surrender them.  I can give you contact details etc if you like.  DM me or richard@theparaplanners.com