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Annuity Planning Brought Back To The Table

6 April 2017

Just when you thought that an annuity was no longer a favoured option for providing income in retirement PraxisIFM offers a new and attractive opportunity for offshore pensions.

Following the recent acquisition of Cavendish Corporate Investments PCC Limited (Cavendish) and working with Trireme Pension Services (Trireme) part of the PraxisIFM Group we can now offer an enhanced range of flexible pension options.

Cavendish is a non-EEA annuity provider as it is based in Guernsey. In essence this means that it is accepted by HMRC as being equivalent to a UK or EU Life Company in respect of the provision of annuities to non-UK pension schemes. For the avoidance of doubt this includes in the main Qualifying Recognised Overseas Pension Schemes (ROPS) Qualifying Non-UK Pension Schemes (QNUPS) and International Pension Plans (IPPs).

Cavendish was established in 2008 and has throughout its existence been administered by Trireme. We believe that its range of offerings in the offshore annuity marketplace is unique. Cavendish is structured as a Protected Cell Company (PCC) and each annuity is offered as a contract from a specific cell of the PCC. Under the PCC structure the annuity offered is ring-fenced and bespoke to the individual annuitant. Funds are not mixed or pooled and the annuity is based purely upon the life of the annuitant. It is therefore flexible as it is not dependant on the survival (or not) of the UK population in general and is not fixed to an annual return that is the case with standard annuity plans. It will provide income following death for a surviving spouse or other named beneficiaries (without the need to reduce the flexibility). Any residual funds will then be passed in accordance with the annuitant's wishes and will be outside of UK Inheritance Tax.

A wide range of annuity types are available dependant on the residence and/or domicile of the annuitant; the need for income balanced against growth of the fund and the type of non-UK pension from which the annuity is purchased.

Cavendish can invest the underlying assets flexibly and the annuities can be equally efficient for those living and domiciled in the UK and those living overseas. The main areas of planning using Cavendish annuities currently focus on:

  • those becoming UK deemed domicile who hold International Pension Plans;
  • those remaining UK resident and domiciled who want a flexible investment vehicle and flexible access to income that is then passed on to named beneficiaries; (NB In conjunction with Trireme we can transfer a UK pension to a Maltese QROPS allowing for access to the Cavendish Annuities;)
  • those living in low/no tax jurisdictions;
  • those in civil law jurisdictions generally where trust-based structures can cause issues;
  • those who want to delay taking significant benefits from their pensions
  • those who want to hold a wider range of investments including residential property as part of a balanced portfolio.

Planning is both varied and each case bespoke.

FOR MORE INFORMATION

If you need more information or want to discuss your specific circumstances in more detail please do not hesitate to contact:

RICHARD GARROD

Email: richard.garrod@triremepensions.com

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