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Lincoln in dual link for Luxemburg bond

Lincoln Financial Group has joined up with Luxemburg life office Sogelife and SG Hambro to offer tax benefits and investment management through its new Luxemburg-based bond.

The Lincoln Privilege bond is a single-premium non-qualifying whole-of-life policy iss-ued by Sogelife. Fund management is provided by SG Hambro Bank & Trust.

The bond offers the choice of three managed portfolios for cautious, balanced and aggressive investors. The offshore bond structure means UK taxpayers can withdraw up to 5 per cent a year of the amount invested, which the Inland Revenue will regard as return of capital rather than income.

No tax return is necessary until the investor repatriates more than the cumulative 5 per cent annual allowance.

At this point, UK-resident investors should make a declaration on their annual tax return.

The Privilege bond is open to UK and non-UK residents. Lincoln is also aiming the bond at expatriates, foreign nat-ionals living in the UK andnon- or lower-rate taxpayers.

Marketing director Steve Parkinson says: “Offshoresingle-premium business accounts for around 20 per cent of the UK single-premium life and pension market, so it is important for us to be able to offer this kind of investment.

“By linking up with Sogelife to offer the bond exclusively within the UK, we are boosting our fund performance through the development of strategic partnerships with well respected fund management companies.”

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