Assurance Vie (Offshore Life Contract)
Frontier provides an advisory service for clients who are currently UK resident but who plan to live in France at some stage in the future.
Our client base is predominantly of European origin and subsequently we are used to assessing the impact of any advice from an international perspective and not purely from a UK position.
A good example of this are the benefits we have identified which are offered by establishing an Assurance Vie (contract): -
Benefits whilst you live in London:
- Assets held in the contract would not be subject to UK inheritance tax.
- Tax does not apply to income or gains which are made in the contract – you can therefore buy, sell or hold, as you wish, without worrying about the tax impact.
- 5% per annum can be withdrawn tax free whilst resident in the UK, with no reporting required (this can be rolled up if you do not need the 5% in any given year).
- Assets held in the contract do not have to be disclosed in the UK and it can therefore provide additional benefits for those subject to and wishing to avoid the remittance charge.
- Flexible investment strategies available.
Benefits on moving to France:
- Once again you can buy, sell or hold your investments in a tax free environment.
- Assurance Vie rules apply, offering the selection of low taxation which can be as little as 7.5% on growth after eight years.
- Five year Wealth Tax exemption if you have been outside France for five years.
- The investment is exempt from French IHT if taken out before moving to France.
- Power to nominate beneficiaries.
Similar benefits are available in most other countries, so please enquire as to how we can assist if you intend living in a country other than France.