What is an Insurance Based Investment Product (IBIP)?

An offshore IBIP is a tax arrangement for investments which improves tax efficiency by facilitating the gross roll up of income and capital gains tax. It allows clients to withdraw up to 5% of the initial investment value each year without an immediate income tax liability. If less than 5% is withdrawn then the unused allowance can be carried forward.

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Our Process

At John Lamb Hill Oldridge we understand that every client is an individual with different needs and circumstances. All of our clients embark on a bespoke journey with us. Our process is designed to ensure that it is as simple as possible for clients.

Explore

We explore solutions with our client and their advisers free of charge and with no obligation. Our highly experienced advisers will make an assessment of a client’s needs, requirements and tax position determining who will be the client (for many placements this may be trustees).

Assess

With the client’s requirements in mind, we undertake an assessment of suitable providers, conducting comprehensive analyses of the financial protection and regulatory frameworks within various offshore jurisdictions to ensure optimal placement for the client.

Existing agreements

The provider will have tri-partite agreements with both the underlying client and the nominated investment managers. Establishing new agreements can take up to 6 months, meaning any time constraints may render a particular provider unsuitable.

Financials

We conduct full money laundering checks including source of wealth and source of funds. Providers requirements tend to be extremely detailed and will require checks not only on the client but also on the trustee and the investment house if these have not already been carried out for other clients.

Recommendation

We prepare a full recommendation for the client covering the suitability of the structure and provider based on their key objectives.

Asset transfer

Further to the client’s instruction, we arrange the asset transfer on their behalf.

Our Ongoing Service

At John Lamb Hill Oldridge we collaborate closely with providers, fostering well established relationships with their teams. This ensures smooth communication and effective coordination in managing our clients’ IBIP and limits any unnecessary administration for our client. We directly communicate with our client’s other advisers to ensure the structure is effectively managed.

Annual review

To ensure the ongoing suitability, we schedule an annual review meeting where we comprehensively assess performance, address any concerns, and make necessary adjustments. We are available to our clients and their advisers on an ad hoc or scheduled basis throughout the year.

Withdrawals

Any withdrawals are reviewed to ensure tax efficiency.

Regular updates

We keep our clients informed of any necessary updates on relevant tax information and any changes in tax regulations pertaining to IBIPs.

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