A-Day boost to offshore investments

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Recent changes to the pension system are prompting many people to consider offshore investments, it has been revealed.

The A-Day alterations in April have seen higher-rate taxpayers taxed on 40 per cent of their pension contributions if they are higher than their salary or £215,000.

In addition, for pension funds over the £1.5 million lifetime limit, a 55 per cent tax has been imposed.

According to Scottish Equitable International, the changes have been welcomed by offshore investment firms, who are expecting to welcome large numbers of high earners fed up of seeing the profits of their hard work returned to the taxman.

Scottish Equitable Internationals managing director, David Healy, commented: "Investors affected by the lifetime allowances may or may not be aware that they can avoid these potential tax liabilities while continuing to save for their retirement by choosing a non-pension alternative."

He added that he believes 25 per cent of FTSE 250 directors have been affected by the A-Day legislation.


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