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Thursday, July 18, 2024

John Lamb Hill Oldridge Launches Specialist Team for Insurance Based Investment Products

Renowned financial advisory firm, John Lamb Hill Oldridge, has launched a specialised team to support advisers and clients in navigating the complexities of Insurance Based Investment Products (IBIPs). This initiative responds to recent changes in Capital Gains Tax (CGT) rules and proposed reforms to the “non-dom” regime, which have notably impacted high net worth individuals and families.

John Lamb Hill Oldridge, celebrated as the UK’s top broker for high-profile and high net worth clients, has experienced a significant increase in the demand for IBIPs, commonly known as “offshore bonds.” This surge is attributed to the freezes and reductions in Income Tax and CGT thresholds and allowances, along with rising administrative costs associated with asset management.

Ken Maxwell, director at John Lamb Hill Oldridge, spoke about the new service: “While we’ve never stopped advising on offshore bonds, demand in recent years has been low. However, reduced CGT allowances and proposed changes to the non-dom rules have left clients and advisers in an uncertain position over the future taxation of non-doms worldwide.

“Collaborating closely with a network of advisers, we ensure seamless integration, offering support to other professionals and acting as part of an advisory team for the benefit of our clients.”

An offshore IBIP is a strategic tax arrangement designed to improve tax efficiency by allowing the gross roll-up of both Income Tax and CGT. Clients can withdraw up to 5% of the initial investment value annually without immediate Income Tax liability, making the structure effective for up to 20 years at this rate, and up to 40 years at a 2.5% withdrawal rate.

John Lamb Hill Oldridge’s dedicated team will not offer an investment proposition, leaving this to the client’s existing investment managers. Instead, their focus will be on providing highly technical advice and support, tailored to the complex needs of high net worth and ultra-high net worth clients.

Ken Maxwell added: “Our team is composed of highly technical advisers who are adept at handling the complexities associated with high net worth and ultra high net worth clients.

“With a deep understanding of the unique requirements and sophisticated needs of this clientele, we are committed to delivering exceptional service and tailored solutions that align with their financial needs and objectives.”

The dedicated team at John Lamb Hill Oldridge will offer free, no-obligation exploratory consultations with clients and their advisers. They will conduct thorough analyses to identify suitable IBIP providers, evaluating financial protection and regulatory frameworks across various offshore jurisdictions to ensure optimal placement. Comprehensive money laundering checks, including source of wealth and source of funds verifications, will be performed. Additionally, detailed recommendations addressing the suitability of the structure and provider based on the client’s key objectives will be prepared.

The team will schedule annual review meetings to assess performance, address concerns, and make necessary adjustments, ensuring maximum tax efficiency for withdrawals. In addition to direct client services, John Lamb Hill Oldridge offers a training module for professional firms seeking technical support, further solidifying their commitment to providing top-tier advisory services.

For more information, contact the dedicated advice team at John Lamb Hill Oldridge at [email protected] or 020 7633 2222.


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