Save And Invest Products Offshore Saving Account Potential 1360X784

Offshore Savings Account

A simple, tax-efficient savings plan

Here’s everything you need to know about our Offshore Savings Account ­– key features, how it works, helpful links, guides and documents.

Eligibility

To get the Offshore Savings Account, you’ll need to be aged between 18 and 89 and have at least £500 a month or single payments of £7,500 to invest. 

Structure

Our Offshore Savings Account is a unit-linked investment bond you can open in your sole name or as a joint account. It’s a series of 10 identical policies – giving you flexibility on how you withdraw your money.

Funds

Choose up to 10 funds from over 150 available in our Canada Life International offshore life funds range. These funds cover all the main asset classes and regions. The fund selection can be changed, without charge, at any time.                        

We offer our popular risk-target managed Portfolio funds alongside more focused funds. This gives the flexibility to build an investment portfolio to suit your needs and goals.

All our funds have undergone a rigorous selection process to make sure they meet our investment, operational, governance and compliance standards.

What are the risks?

As with any investment, values can go up and down and different types of investment have different levels of risk. You may get back less than you invest and past performance is no guide to the future.

Withdrawing money

All withdrawals are free of charge.

Regular withdrawals
After 36 monthly premiums or three yearly premiums have been paid, you can make withdrawals. Withdrawals can be made every month, every three months, every six months or every year. The minimum amount you can withdraw is £100. There’s no maximum amount, as long as you keep £1,000 invested.

One-off withdrawals
You can cash-in (surrender) part of your investment at any time. The minimum amount you can withdraw is £100. There’s no maximum amount, as long as you leave £1,000 invested.

5% tax-deferred withdrawal allowance
If you pay tax in the UK, you can withdraw up to 5% of your original investment each year without having to pay any tax on it. Payments made to your adviser may be included in this allowance. If you don’t withdraw the full 5%, the remaining allowance can be carried over into the next year. You can do this until you’ve withdrawn 100% of your original investment.

Cashing in
You can cash in your investment in full, at any time. Although you should always speak to an adviser to discuss any tax implications.

Charges

You’ll need to pay us a charge for setting-up and looking after the investment. We take this payment by deducting 1.25% from each regular and single premium.

If for any reason you stop paying your premiums or cash-in during the three-year minimum contribution period, we’ll need to take the outstanding charges.

Fund charges
Each fund has an investment management charge, which is incorporated into the amount you pay for the fund. This charge varies from fund to fund. For a full list of fund charges, visit our Fund Centre

Paying your adviser
If you want us to pay your adviser, we offer two options:

  • We can deduct the adviser charge from your investment before the money is invested
  • We can pay your adviser on a monthly, quarterly, half-yearly or yearly basis

You can either pay a set amount, or a percentage of the investment’s value.

The charges for our Offshore Savings Account depend on how your account is set-up. You’ll find details of the charges on your personal product illustration, which can be sent to your adviser.

Tax

Investment growth
We’re resident in the Isle of Man, so there’s no tax on the capital growth or income, which our funds generate.

When the account is fully surrendered or cashed in, you may need to pay a charge for UK income tax.

It’s important to remember that the value of your investment can go down as well as up and you may get back less than you invest. The way funds have performed in the past is no guide to future performance.

Inheritance tax
If your bond isn’t in a trust, there may be inheritance tax to pay when you die. By placing your investment in a trust, there may be less inheritance tax to pay, or none at all.

Tax rules depend on individual circumstances and may change. Speak to an adviser, if you need more information on tax.

Explore our trusts and see how they could help you pass on your wealth in a tax-efficient way.

Trust options

You can use a trust with your Offshore Savings Account investment bond. This could reduce the amount of inheritance tax that needs to be paid when you die.

This account can be used with the following trusts:

  • Gift and Loan Trust
  • Gift Trust
  • Probate Trust
  • Excluded Property Trust

Trusts explained. Find out more about the types of trust we offer and how they could help you pass on your wealth in a tax-efficient way.

Tax rules depend on individual circumstances and may change. Speak to an adviser, if you need more information on tax.

Additional information

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