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Repatriation – What to think About when it comes to your savings

by Jan Wiberg of Quilter International

• Quilter International was formerly known as Old Mutual International from South Africa

• A long-established reputation for expertise for over 35 years in over 40 countries

• Listed on the FTSE 250 with a Fitch Rating of A-

• AUM of £109bn for 900,000 customers

A K-Policy for your Savings

Many reasons for using a K-Policy (e.g. no capital gains (30%)- just a yield tax of around 7%).

Using a Foreign Insurance in Sweden

You can have up to two owners (e.g. married couple) of this insurance and up to 20 lives insured.

Furthermore, if you pass away your insurance is still live and so your heirs inherit the insurance rather than the assets- this means the full capital can remain within the insurance.

This is particularly useful if you have private equity because timings are key when it comes to selling.

The arrangement can also allow for 12 clusters by default (rather than the usual one) which enables the insurance to be split between multiple heirs.

In the long term (for future generations) you may wish to have up to 999 clusters as that will allow for your insurance to be well distributed amongst those you choose.

Setting up a K-Policy

If you pass away but owned U.S. shares worth over $60,000 then your heirs will have to pay an inheritance tax in the U.S.. This can totally be avoided if you have your assets in a K-policy. However, if you are a U.S. citizen then you only have to pay the inheritance tax on shares worth over $11.6m which would be more favourable.

More people are now investing in Private Equity because it is harder to find decent income from bonds or similar alternatives. In most cases you can use this in a K-policy too.

Arriving in the UK

If you setup a K-policy in Sweden: you must then register this with the UK tax authorities.

You can only take out 5% p.a., cumulative, from your K-policy in the UK without paying any tax- whereas, in Sweden it is unrestricted.

Arriving in Portugal

A historically popular destination to relocate- especially for a pension.

Gross roll-up, as net yield tax does not apply in Portugal.

The profit element of a withdrawal is taxable at a maximum rate of 28%.

Returning to Sweden

There will be a net yield tax upon return to Sweden.

However, we recommend further consultation for additional details upon all of these arrangements.

Our thanks go out to Quilter International for hosting this event.

Date: 21 October 2020
Time: 10.00 – 10.45 CEST
Venue: Zoom

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