Offshore Pension Plans

Offshore Pension plans, International Pension Schemes and Directors Remuneration schemes, are used to regularly extract large sums of cash from the company to form the basis of an offshore pension plan. The cash can be used for tax free growth and investment as part of a offshore pension plan / unapproved offshore pension structure that also minimises liability to Income Tax and National Insurance.

An example of the use of an offshore pension plan is a company that has an excess cash of £500k that the directors/shareholders wish to extract. The most efficient option normally available would have to take dividends,  creating a tax charge of £180,000.

By utilising offshore pension plans, the client was able to extract the excess profits to an offshore structure without income tax or national insurance being due. The offshore structure can further invest the funds tax efficiently in a wide range of assets, allowing tax free growth offshore.

If you would like any more information regarding Offshore Pension Plans or would simply like to discuss other ways in which we could help you and your company, please do not hesitate to contact Chris either on 01962 856 990 or by emailing chris.pitt@taxinnovations.com