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Offshore Funds

There is a lot of confusion about offshore funds.

They key issues are these:-

  • They come in many guises and different packages, so the fact that a fund is offshore tells you nothing about the structure, charges etc. You must assess each fund individually.
  • The regulations that govern the offshore investment may or may not be adequate. There are some very well regulated jurisdictions (such as the Isle of Man, home to the offshore arms of many UK financial services companies), but others that are less so.
  • Compensation scheme protection may not be as strong as in the UK.
  • The tax implications depend very much on your tax position, not that of the fund. It is perfectly common for a fund to be exempt from any taxes in the country in which it is based, but for you to be fully taxable on any income, profits or gains that the fund makes, either as it makes them or when you take them.
  • In general there are few tax benefits for the ordinary UK resident taxpayer of using offshore funds.
  • There can be tax advantages for UK nationals living overseas, (or intending to do so for at least a whole tax year) or foreign nationals living in the UK.

The value of investments can fall as well as rise and you may not get back the amount you originally invested. Past performance is not a guide to future performance.

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Pavis Financial Management Limited is authorised and regulated by the Financial Conduct Authority. Financial Services Register No: 153871 http://www.fca.org.uk/register.

Pavis Financial Management Limited Registered Address: 4 St. Pauls Square, Liverpool, L3 9SJ. Registered in England & Wales, No. 02625986.

Neither Pavis Financial Management Limited nor its representatives can be held responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

The Financial Conduct Authority does not regulate National Savings or some forms of mortgage, tax planning, taxation and trust advice, offshore investments or school fees planning.

The value of investments and income from them can fluctuate, and investors might not get back the full amount invested. Past performance is not a guide to future performance. Equity based investments do not afford the same capital security that is afforded with a deposit account.

Should you have cause to complain, and you are not satisfied with our response to your complaint, you may be able to refer it to the Financial Ombudsman Service, which can be contacted as follows: The Financial Ombudsman Service, Exchange Tower, London, E14 9SR www.financial-ombudsman.org.uk

The information contained within this site is subject to the UK regulatory regime and is therefore targeted primarily at consumers based in the UK.

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