Executive Introduction to Long Term Wealth Planning

Client issues

Berkshire Wealth in collaboration with its chosen professional advisers, facilitates the provision of regulated pension planning for High Net Worth (HNW), UK and Non domiciled individuals and families.

Although seemingly counterintuitive, there are many reasons why it may be appropriate for HNW UK and Non domiciled individuals to consider pension arrangements as part of their long term wealth planning, especially if there is a possibility that they and/or their families may choose to reside in the UK in the future.

    • Many clients considering UK residency in the future, currently hold or are considering investing in UK residential property. In this scenario, our leading UK regulated pension advisor can be engaged to advise on the frequently material changes facing Non Domiciled (UK Resident and Non Resident) investors in UK residential property. Recently imposed and proposed legislative changes for these investors include:
    • A register disclosing UK residential property ownership will be created and in the public domain.
    • A liability to UK Capital Gains Tax (CGT) was introduced with effect from April 2015.
    • Inheritance Tax (IHT) exposure on their UK residential holdings from Apr 2017.

Client long term planning solution

For many High Net Worth clients, pension planning will be an unfamiliar concept. The primary principle behind a pension is to allow assets placed within it to grow without the burden of frictional taxation liabilities thereby maximising the final amount available upon retirement.

Qualifying Non UK Pension Schemes (QNUPS) are often the most relevant long term pension vehicles for international HNW individuals, and can be both flexible and efficient tools for such wealth planning.

The asset classes that can be maintained within QNUPS are very diverse and include cash, investment bonds, equities and UK residential and commercial investment property, however, a principal private residence would not be appropriate as it is not an investment asset.

Assets held within a pension arrangement will generally not be liable to CGT. Income tax will ultimately be on any pension income at the prevailing rate in the jurisdiction in which the beneficiary is resident upon retirement.

Process

  • Client provides relevant financial information to BW on a confidential basis.
  • BW and our appointed regulated pensions advisor will liaise with the client’s tax and trust advisors as required.
  • If appropriate an optimal pension arrangement is configured for the client by the regulated pension advisor.
  • The agreed Pension arrangement is put in place and HMRC authorisation sought where required.
  • Entire Process takes 6-10 weeks.