Contact

News & Insights

Vulnerable UK Expat clients and their UK advisers left short by lack of Professional Indemnity cover

With passporting rights being a thing of the past, PII is not going to cover any of their EU based clients and means that both clients and their UK financial advisers are effectively in limbo. This lack of PII also stops cross border advice.  However, this does not apply to Global firms with worldwide cover such as Blacktower.

Put simply, this means there should no longer be UK-based advisers with EU-based clients.  So where does this leave you and who will service your plans and provide the right kind of protection? This might not be all bad news and could actually be good news, since French compliant products are better for UK expats living in France as they can offer significant savings with regards to income tax and inheritance tax.

One of these such products is Assurance Vie.  Most of us have heard of this if we have done any kind of research or lived in France for any length of time, but very few understand what it is and there are many misconceptions when I speak to clients about Assurance Vie.  One of the biggest is that you can’t access your money for 8 years.  Depending on which company you use to set-up your Assurance Vie you can have as much or as little access as you want.  What happens after 8 years is that you are given an additional tax-free allowance of €4,600.  This means that if any part of a withdrawal you make is subject to tax, then the first €4,600 will be treated as nil-rate.  It is an added bonus to encourage people to keep their money invested for the longer-term. 

As an international company we can offer you an international version of the Assurance Vie, which benefits from all the tax efficiency of being a French-compliant investment, but it allows you to keep your savings in GBP or convert to Euros or USD, if you would prefer.  This might help from a point of view of longer-term succession planning, if you intend to leave some of your money to your family, friends or charities in the UK.  If that is the case, it may not be the best option for you to convert your current savings to Euros. 

Additionally, to this, if you move to a different European country or back to the UK it is possible to port the Assurance Vie with you and it would simply become an offshore bond, that would remain tax efficient in the UK from both a growth perspective and income perspective.

Of course, you can always leave your savings and investments in the UK, but what was tax-efficient whilst you were a UK resident, is no longer tax-efficient in France and the onus is on you to report the interest and gains on these correctly and pay potentially 30% in investment tax and prélèvement sociaux each year, regardless of whether or not you withdraw any money.

It doesn’t always have to be complicated and I would be happy to talk through your individual circumstances.  You can contact me by email Rosemary.sheppard@blacktowerfm.com or call me on 06 38 86 99 70. Website: www.blacktowerfm.com Initial consultations are free of charge and you can rest assured that Blacktower is a truly Global leader in financial services and carries Professional Indemnity Insurance to cover and protect all of our clients.

This article is based on the opinion of the financial adviser and author, and does not reflect the views of Blacktower. The above information is based on current legislation which is subject to change and does not constitute as investment advice, or investment research and you should seek advice from a professional adviser before embarking on any financial planning activity.

Blacktower Insurance Agents & Advisors Ltd is regulated in Cyprus by the Insurance Companies Control Service and registered with ORIAS in France. Blacktower Financial Management (Cyprus) Ltd is regulated in Cyprus by the Cyprus Securities & Exchange Commission and is registered with the AMF in France.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

Defined Benefit Plan Deficit Raises Questions

Piggy bankA pension transfer is not for everyone and there will be many factors to weigh up before making the decision to transfer from an existing scheme into a QROPS, SIPPs or other structure.

However, a great deal of doubt remains about the long-term viability of the nation’s defined benefit plans, with the high-profile collapse of a number of such schemes leading many to question their reliability and suitability.

And these doubts have only been increased by the recent revelation from Mercer that during 2017/18 the accounting deficit for the defined benefit plans of the UK’s top 350 FTSE organisations increased by 28% to £41 billion, mainly because of a £19 billion drop in asset values (from £766 billion to £747 billion).

Read More

Pre-move Spanish wealth management

Spanish FlagMore than four in ten retired British expats choose to live in Spain. This could be for various reasons, including Spain’s financial opportunities, family tradition, historical ties between the two countries, and, of course, the Spanish culture and climate.

However, it is little use making the most of Spain’s wealth management opportunities if your UK-based financial situation is not organised before making the move.

For example, nowadays the UK has various regulations and agreements in place with the European Union which mean that unless you pay off, or legally attend to, your UK debts before moving you could be served with a European Enforcement Order (EEO) – hardly the welcome card expats want when taking up residence in their new Spanish address.

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information:

You are currently viewing the Blacktower Financial Management EU website.

You may be looking for the Blacktower United States website.

Blacktower United States > X Stay on this site

Or choose your country.