Dimensions Preference 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 regular 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 Dimensions Preference Discounted Trust Account offers a range of over 4,000 collective funds that can be used along with the ability to invest in cash deposits offering by non-UK financial institutions.

  • 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.
  • 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 choose.
  • You and your advisers have the ability to vary the underlying investment at any time, unless a fixed term cash deposit is held.
  • There is a choice of charging structures so you and your adviser can select the one most suitable for you.

The Account offers a comprehensive range of investments with over 4,000 unit trusts and open ended investment companies for your and your advisers to choose from. In addition to this, there is the option to include cash deposits from non-UK financial institutions.

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 Dimensions Preference Discounted 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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"Desmond is a widower, aged 67. He uses investments of £400,000 to supplement existing income so does not want to gift money unless he can retain an income."
Desmond

Contact us to find out more

United Kingdom
0345 606 0708

International
01624 820200

United Kingdom
customer.services@canadalife.co.uk

International (Isle of Man)
focus@canadalifeint.com

International (Dublin)
distributionsupport@canadalifeint.ie

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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.