The Association of International Life Offices (Ailo) has published a guide to help UK financial advisers navigate the landscape of financial planning.
The handbook focuses on cross-border bonds as a flexible investment product with a favourable tax incentive for clients.
Ailo argues that this type of investment can be a viable one even with the looming prospect of Brexit.
“Brexit will not, of itself, change the tax treatment of cross-border bonds held by UK residents, as this is governed by UK domestic tax legislation,” the association said in the guide.
Suitability
The guide is divided into two parts.
The first dwells on recent legislation and other developments that may affect cross-border bonds and the related financial planning process.
The second part, instead, covers the structure, use and taxation of these investment vehicles.
Bob Pain, chief executive of Ailo, said: “Cross-border bonds have a number of key generic benefits that advisers should consider when investigating financial planning strategies for clients and making recommendations on suitable products for use in such strategies.
“Ailo’s generic guide provides insight into the technical detail of this sector and offers practical examples of scenarios in which a cross-border bond might be appropriate for a client’s needs.”
