AEGON offshore bond with European portability option
AEGON has announced the introduction of a valuable new option on its main offshore investment bond, the Wealth Management Portfolio, that ensures that customers moving from the UK to Spain, France or Italy can benefit from tax deferral and the ongoing certainty of their bond being tax compliant in those countries.
Recent research by AON Consulting suggests that more than half of the UK population (57%) wish to retire abroad. Of those, the top three European destinations of choice were Spain at 25%, France at 12% and Italy at 10%. Additionally, the latest Migration Statistics Quarterly Report, published on 26 August 2010, from the Office of National Statistics suggests that long-term emigration from the UK in the year to December 2009 was 371,000.
The European Portability Option is free of charge with no ongoing additional charges for the support services. The option means that customers can move between the UK and these countries and maintain tax efficiency, but without having to move their savings to a different product.
The European Portability Option also provides ongoing customer support that will include a welcome pack when a customer selects the option. The pack includes: a moving abroad investment checklist, which provides information on what to do in connection with their bond before moving abroad, as well as tax deadlines; a tax factsheet that gives details of tax rates, and illustrates how tax in relation to their bond is calculated differently between the UK and their new country of residence; and an ongoing support leaflet that sets out what information we'll provide to make sure they meet their tax obligations.
David Healy, Managing Director of AEGON Ireland says: "We identified an important issue that many people buy long-term investment products designed specifically for the UK market and retire abroad without any ongoing tax support. We have developed the European Portability Option for customers who intend to move to Spain, France or Italy. It's free of charge to customers and provides peace of mind and continued certainty of a customer's tax position in these jurisdictions.
"The implications of giving the wrong advice in this complex area are significant for the customer, and the adviser. The European Portability Option will give advisers re-assurance and support that until now was reserved for those willing to pay for specialist services."
