Independent Trustee Company · Example 1: Pension Planning If pension stays in Ireland: If pension...
Transcript of Independent Trustee Company · Example 1: Pension Planning If pension stays in Ireland: If pension...
IndependentTrusteeCompanyAidanMcLoughlin
TodaysAgenda
Ø AboutITC
Ø CurrentPensionMarketOpportunities• PensionProperty• InternationalPensions
Ø Budget2018Update
Ø Summary
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IndependentTrusteeCompany(ITC)
Ø Ireland’sleadingproviderofselfinvestedsolutions
Ø €1.6BnAssetsunderTrusteeship
Ø €1bnAssetsunderAdministration
Ø Over3,000schemes
Ø StrongTechnicalCapability
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OurApproach– TheITCWay
Alifelongfiduciary(Trustee)relationshipwiththeAdviser/Client
Assetsheldinthestrongest,mostprotectedstructures
Assetsnotheldonbalancesheetofprovider-Noproviderrisk
AbilitytoinvestacrossthespectrumviaLEAPintoFinancialAssets(Funds,ETF’sEtc.)&viadirectinvestmentintorealassets(Property)
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SelfInvestedPensions
ITChavethefullrange
SSAS
BOB
PRSAARF/AMRF
IORPS
AllSelfDirected
Ø AssetsnotheldonITC’sBalanceSheet– Safestwaytoholdassets.Ø Assetsstronglyprotectedagainstcreditorattack.
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InvestmentPossibilities
Flexibility,Control,
LowerCost,Fully
Transparent
Property
SyndicatedInvestmentse.g.GuaranteedIncomeProducts
BespokeInvestmentse.g.LoanNoteInvestment
RegulatedInvestments-
LEAPFunds,ETF’s,and
Equities
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Property Rents&CapitalGainsTaxFreeinIreland
Residential,Commercial,
Retail
StreamlinedProperty
InvestmentProcess
In-houseLegalTeamWorkswithYourSolicitor
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SyndicatedInvestments
Ø CapitalGuaranteedInvestments
Ø HighCouponInvestments–RenewableEnergy
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BespokeInvestments
PrivateEquity
Loanstocompanies
Loanstofundproperty
transactions
In-houselegalteamwithexpertiseinstructuring
theseinvestments
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LEAP
Ø WhatisLEAP- LeadingEdgeAdvisorProgramme
Ø KeyFeaturesq LEAPInvestmentPlatform- InvestinginFunds,ETFsandEquities
q CustodianisPershing/BankofNewYorkMellon- $28trninAssets
qWholesalePricingofinvestments
q Canhandlebothpensionandnonpensionmonies
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InternationalTransfers
Ø EU4Freedoms
Ø IORPsDirective2003
Ø OverseasTransferRegulationsSI716of2003
Ø Ch.13&24ofPensionsManual
Ø TaxChargeonPRSAs
Ø HeathrowARFandBonaFides
Ø O’SullivanCase
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ITCInternational
MaltesePensionProvider
JointVentureBetweenITC&MalteseFinancialServicesCompany
FirstCompanytobeApprovedforBothCompany&PersonalPensions
IORP’sApprovedPensionMasterTrustinMalta
OffersSignificantPossibilitiestoClients
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RevenueRequirements
•EUtransfersmustbe• toanIORPS• establishedinaMemberStatethathasimplementedIORPSDirective
• WithschemeadministratorresidentinEUState
•OnlyBonaFideTransfersacceptable• DeclarationbyMember
•IfConditionsmetRevenueApprovalnotneeded
ü
ü
ü
ü
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WhatCanITCInternationalPensionsdoforClients?
IORPsExamples• Pre-retirementTaxPlanning• CashFlowPlanningPostRetirement• SecuringPensionFundsInACrisis• IncreasedTFLS• FlexibilityForInternationalExecutives
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MaltaPensions
Ø BenefitsfromAge50
Ø LumpSumat30%
Ø NoFundCap
Ø FlexibleDrawdown
Ø BenefitsonFirstDeath
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Example1:PensionPlanning
IfpensionstaysinIreland: IfpensiontransferstoMalta:
� IfJackwaitsuntil60fundcouldexceed€5mgivingEFTof€1.2m
� Jackcanreducetaxby€400kbyretiringat50butmustsellsharesetc.
� Jackreceiveslumpsumof€1.5mat60
� SetDrawdownstosuitlifestylethereafter
PensionPlanning:€2mLimit
ClientDetails:Jack,40yearoldbusinessownerwith€2mPensionFund
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Example2:PensionPlanning:NonResident
IfpensionstaysinIreland: IfpensiontransferstoMalta:
� AnniewillsufferPAYEatsource
� ShewillneedtofileataxreturnandpaytaxinUK.
� ShewillthenneedtoclaimtaxbackusingFormIC9fromIrishRevenue.
� IncomeinpaidgrossinMalta.
� AnniejustfilesandpaysUKtax.
Annie,residentinNorthernIrelandhasmaturingIrishpensionbenefitworth€300k
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Example3:PensionPlanning:Portugal
IfpensionstaysinIreland: IfpensiontransferstoMalta:
� JillwillsufferIrishtaxatsource.� Jillreceives€300ktaxfree.
� Shesetsherdrawdownsat€30,000perannum.
� UndertheNonHabitualResidentregimeinPortugalJillcanreceivethistaxfreefor10years
� IntotalJillhasreceived€600kfreeoftax.
Jill,aged60,hasaPensionFundworth€1mandisretiringtoPortugal.
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Example4:Pensionplanning:InternationalExecutive
Ø NickhasreceivedajobofferinCalifornia.Hehasapensionfundworth€500kinIreland.
Ø NickisconcernedthathispensionpotwillbetaxedintheUS.HoweverhecannottransferittotheUS.
Ø NicktransfershispensionpottoMalta.
Ø Article18oftheMaltaUStreatyprovidesthattheIncomeearnedbytheMaltaFundisonlytaxedondrawdown
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WhatCanITCInternationalPensionsdoforAdvisors?
Examples• Helpwinanewclient- highnetworth• Protectyourclientsfromattack• Advisorseenbytheclientasproactiveandcreative• Opportunitytochargeaconsultancyfee• Trailerfeeaddsvaluetothebusinessbalancesheet• Trailerfeecontinuestogrowintandemwithclient
investments• Retainstronginvestmentadvisoryroleongoing
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QROPSØ HMRCregimeforoverseastransfers
Ø EUresidentscantransfertoanotherEUcountry.
Ø NonEUresidentscantransfertocountryofresidence.
Ø Ifthisdoesn’tapplyorifitchangesinfirst5years25%transfertaxapplies.
Ø Anypaymentsordeemedpaymentsinfirst5yearsTransfertaxapplies.
Ø Benefitsonlytoover55s.
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LifetimeLimit
Ø UKsystemsimilartoIrishExcessFundTax.
Ø Since5April2016Limitis£1million.Ø Limitprotectionispossibleifno
contributionsmadesince5April2016at£1.25m.
Ø Furtherprotectionpossibleat£1.5millionifnocontributionssince5April2014.
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Brexit
• ImpactonIrishBranchesofInsurers
• Furtherrestrictionsontransfers
• DataProtectionandAdministrationissues
• PossibleimpactonInvestments
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QROPSMarket
• £1.5billioninannualtransfers• 411,000IrishinUK• 255,000BritsinIreland• OthersincludingBrexitbusinessesmoving
toIreland,previousreturnees,Nonnationals,NorthernIrish
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Example1:QROPSPlanning:UKExcessFundTax
• Mary,age40,hasUKpensionworth£950kandhasreturnedtoIreland.
• IfsheleavesitinUKitquicklyexceedlifetimelimitof£1million.• ShetransferstoBOBinIreland.Fundgrowsto€2.5millionatage60.• UKExcessFundTaxdoesn’tapply.• IrishExcessFundTaxdoesn’tapply.• BenefitisnotincludedinIrishThresholdcalculation.
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Example2:QROPSPlanning:UKLifetimelimit
• Joe,nowaged59,returnedtoIrelandage40.• HisUKbenefitisnowworth£1.2million.• HisIrishBenefitsareworth€1.9million.• Histargetretirementdateis65.• HetransfersbothbenefitstoMalta.• NoExcessFundTaxinIrelandasfundisbelow€2m.• NoExcessFundTaxinUKbecausehecanclaimLifetimeLimit
Protection.
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Budget2018
• Property and Housing• Vacant Sites – 7%• Stamp Refund on Resi Dev land• 6% Stamp Duty on Commercial• Pre letting expense up to €5k per resi property• Existing Mortgage relief extended• S604A relief available after 4 years
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Budget 2018
• SMEs and Self Employed• KEEP – Key Employees• SE – Earned Income Credit Increased by €200• Farmers – Land Leased For Solar is Eligible for CGT & CAT Relief• Farmers – Intra Family Transfers at 1% Stamp Duty
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Budget 2018
• Miscellaneous• Employee Electric Cars• Charities and VAT• Sunbed Services• PAYE Compliance
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Forfurtherinformationpleasecontact:
Email: [email protected]: 0860210043Website: www.independent-trustee.com
Questions?