The perceived risk of investing offshore is diminishing, according to new research from Norwich Union International Limited (NUIL). Of those who have chosen an offshore investment, nearly one in three (30%) said they had done so as part of planning for retirement.
The perceived risk of investing offshore is diminishing, according to new research from Norwich Union International Limited (NUIL). Of those who have chosen an offshore investment, nearly one in three (30%) said they had done so as part of planning for retirement.
As many planning their retirement usually prefer the perceived security attached to UK investments, the findings suggest that people are prepared to be more adventurous with their money. It also suggests that people are aware of the different investment options available to them.
The NUIL survey conducted by NOP asked a representative sample of more than 1000 people in the UK about investing offshore. The questionnaire asked those people who held an offshore investment product, the reasons why they choose to invest offshore.
Other findings include:
- Money Smart - One in five people (20%) choose an offshore investment product for general tax planning purposes. Putting money offshore allows for personal income tax deferral.
- Tax Evasion: One in seven (15%) believe incorrectly that investing offshore allows you to evade the taxman, a belief that was held more by men, 19 per cent, compared with 9 per cent of women.
- Global Hotdesking: With working life taking on an increasingly global perspective, where employees may spend some years posted abroad, investing money offshore could be an effective way to look after your investment and take advantage of the tax free benefits of the offshore environment. One in five (21%) of those asked said that they would choose to invest offshore for general savings while working abroad or if they were planning to move abroad.
The research comes three months after the launch of Norwich Union’s newly established life and investment operation in Dublin - Norwich Union International Limited.
Jon Herbert, chief executive of Norwich Union International said: "Our research indicates that there is a demand for offshore investment products, and with the launch of Norwich Union International Limited in January this year, we can offer UK potentially investors tax efficient investment which can be tailored to suit their needs.
"Our research indicates that UK residents, view investing offshore as a good way of planning for the future – for retirement planning or for UK residents with an international working life or who have family or property abroad, investing offshore could provide a neutral base in which they can maximise their investment potential."
Ends
Media contacts:
James Duffell, Norwich Union 01603 680874
Andrew Waterworth / Rebecca Ellis-Owen, Financial Dynamics 020 7831 3113
Notes to Editors
1. Norwich Union International’s products offer the potential to defer personal income tax liability until the bond is fully cashed in. There is no tax liability on fund switches and no personal capital gains tax liability on investment returns. Dividend income and capital gains are rolled up tax free (with the exception of some irrecoverable withholding tax) which accelerates the potential for investment growth.
*NUIL offers investors the option of taking advantage of the tax friendly environment of offshore investment. NUIL launched the Norwich International Investment Bond and the Norwich International Portfolio Bond on March 6. These are single premium investment bonds with no fixed term. They are designed as medium to long-term investments and should not be viewed as short-term commitments.
The Norwich Union International research was undertaken by NOP among a nationally representative GB sample of 1001 people between 3 and 5 March 2000.
- The value of investments can go down as well as up. Investors may not get back the amount invested.
- These bonds should be considered as medium and long-term investment.
- The future basic and rates of tax may vary
- An early surrender charge may be applied
- Full written terms and conditions are available on request
Norwich Union International Limited 6 Georges Dock, International Financial Services Centre, Dublin 1 Republic of Ireland. Registered number 303 257
Norwich Union International Limited is supervised by the regulatory Authorities of the Republic of Ireland.
Approved by Norwich Union Life & Pensions Limited. Registered Office 8 Surrey Street Norwich NR1 3NG UK Registered No 3253947 England
Norwich Union Life & Pensions Limited is regulated by the Personal Investment Authority. The Personal Investment Authority rules and regulations are made under the Financial Services Act 1986 for the protection of investors and apply only to investment business conducted in or from the UK.
Norwich Union Investment Management Limited is regulated by IMRO