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19/09/2014

Skandia International, part of Old Mutual Wealth, has enhanced the adviser charging options available on its range of offshore bonds. The enhancement means the advice fee no longer needs to be deducted from the annual 5% tax-free withdrawal allowance, leaving more of the allowance for the customer. This is great news for UK advisers and customers who want to use the 5% withdrawal allowance on offshore bonds because customers can benefit from greater tax-free income.

The enhancement follows HMRC’s recent confirmation that, provided certain conditions are met, all advice relating to investments linked to the offshore bond can be considered as advice to the life company and not to the adviser. This means that the advice fee is deemed to be part of the product, and does not impact the annual 5% tax-free withdrawal allowance.

This only applies where the advice relates specifically to investment advice. Skandia International previously used this model on its Discretionary Asset Management service and is now able to roll it out to all advisers offering investment advice.

Rachael Griffin, head of technical marketing at Skandia, comments:

“This enhancement is fantastic news for customers. It means they have more of the annual 5% tax-free allowance to take as withdrawals. We’ve had a great response from advisers to this development as they see this as a real tangible benefit to their customers, and are keen to set up their new offshore bond business in this way.”

For more information contact

Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145 076

Notes to editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £118.1 billion in customer investments (as at 30 September 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• The private client advisers business is now Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.