John Lamb Hill Oldridge Introduces Advisory Team for Insurance Based Investment Products

Prominent financial advisory firm, John Lamb Hill Oldridge, has announced the establishment of a specialised team to aid advisers and clients in managing the intricacies of Insurance Based Investment Products (IBIPs). This move comes in response to recent modifications in Capital Gains Tax (CGT) rules and proposed reforms to the “non-dom” regime, which have significantly affected high net worth individuals and families.

John Lamb Hill Oldridge, acknowledged as the UK’s leading broker for high-profile and high net worth clients, has seen a notable rise in the demand for IBIPs, often referred to as “offshore bonds.” This increase is due to the freezes and reductions in Income Tax and CGT thresholds and allowances, as well as escalating administrative costs related to asset management.

Ken Maxwell, director at John Lamb Hill Oldridge, commented on the new service: “While we’ve never ceased 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.

“By working 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 enhance 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.