Delta Discounted Trust Account

Reducing your inheritance tax and supplement your income

A discounted trust account is a way of removing money from your estate and reducing the potential inheritance tax that your beneficiaries will have to pay when you die. The underlying trust also allows you to receive periodic payments from the investment - these payments will be set at outset and can be paid monthly, quarterly, half yearly or yearly to supplement your income.

As the underlying investment is held with Canada Life International, based on the Isle of Man, the trustees can benefit from a tax-efficient investment, free of UK tax. Also, the payments you receive can be paid on a tax deferred basis, usually without any immediate income tax liability.

The Delta Discounted Trust Account offers a lost cost solution with a selected range of investment options and a variety of charging options.

  • The tax efficient growth of an investment based on the Isle of Man for a UK resident means that any growth achieved in the Account is not subject to the UK tax regime. Tax may apply when any profit is brought back into the UK.
  • The potential inheritance tax payable when you die will be reduced immediately, with a further reduction after you have survived seven years from the original investment.
  • There is unlimited free switching between the funds available allowing you and your adviser to restructure the investment as required.
  • After you die, the value of the trust will be available. Depending on the type of trust used, the trustees can pay these funds out to the chosen beneficiaries or maintain the trust and pay out benefits as and when they chose.

The fund range available includes over 150 funds managed by Canada Life’s own award winning investment team and other well-known and respected investment companies such as Jupiter, Investec, M&G and so on.

The funds being invested in can be changed at any time without charge.

The value of investments can fall as well as rise and you should speak to a professional adviser to ensure that any investment is suitable for you.

The Delta Discounts Trust Account will appeal to UK investors who want to combine a tax-efficient investment and reduce the inheritance tax liability on their estate whilst receiving regular payments to supplement their income.

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"Deanna realises that she doesn’t have sufficient pension income and was planning to work until she was 70, however, she has inherited £200,000 from her father."
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Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority.

Canada Life International Assurance (Ireland) DAC is authorised and regulated by the Central Bank of Ireland.

Stonehaven UK Limited and MGM Advantage Life Limited, trading as Canada Life, are subsidiaries of The Canada Life Group (U.K.) Limited. Stonehaven UK Ltd is authorised and regulated by the Financial Conduct Authority. MGM Advantage Life Limited is authorised and regulated by the Financial Conduct Authority.