Planning for non-domiciled clients
Mr M is a Turkish National who has just moved to the UK with his career as an International Private Banker. He is married with two children and likely to work in the UK for many years although, eventually, likely to return to Turkey.
In the past, Mr M has also worked in Germany and the USA.
Mr M wanted to consolidate his investments and pensions which were now spread over several countries. He also knew that he was likely to want to buy a new house at some point and realized the importance of specialist investment and taxation advice.
A colleague recommended Knightsbridge Wealth and we met Mr M who explained their current situation. He had cash to complete a property purchase but also wary of putting so much of his assets in one property. We explained the importance of keeping down the value of his UK estate for inheritance tax reasons and we introduced him to an international tax lawyer.
With the tax lawyer, we undertook a full appraisal of his current investments and pensions and worked on a plan to ensure his arrangements were best placed to take advantage of his UK resident, non domiciled, status. This included a low-cost resident mortgage package, through an international private bank, sat alongside a dynamically managed portfolio of investments.
This was to consolidate existing arrangements within a bank that understood the importance of capital and income segregation to ensure that funds could be moved into the UK without a tax charge, if needed.
The portfolio is held offshore, the mortgage onshore and all advice covered by the highest standards of UK regulation. The offshore pensions will be moved
to a more efficient offshore trust.
Rather than a range of different investments, with different tax consequences, in different jurisdictions, the clients now have a single point of contact, together with daily on line access, for their funds which are diversified across a number of providers.