According to Scottish Equitable International, the new tax regime in Britain has improved financial planning opportunities for investors to 'grow' their pension savings offshore. The firm believe that this is especially true of those that exceed the £1.5 million lifetime allowance. Following 'A' day where new pension laws that started on 6 April 2006, higher rate tax payers will be taxed at 40% on annual pension contributions exceeding 100% of salary or the current £215,000 annual allowance, and 55% on pension funds in excess of the current lifetime allowance of £1.5 million.
Our view:
'High rollers' in the over the 1.5m bracket are few and far between. This is just headline grabbing as many people should consider offshore investment anyway as part of a balanced portfolio.