We are now recommending to our clients a unique way of ensuring that their investment in Bitcoins is arranged in a highly tax efficient manner.
It is now possible to Buy and sell Bitcoins and other cryptocurrencies via an offshore investment platform known as an Exclusive Investment Bond (EIB) rather than having to go through a bitcoin exchange, or peer-to-peer market.
This asset is purchased by investors in the same way that they buy and sell any other investment on the platform. The Bitcoin is held as an asset in the EIB and can be bought and sold with all of the associated tax benefits.
For any client that may have existing cryptocurrency holdings these can easily be transferred over to the EIB platform. The cryptocurrencies can be sold at any time and converted into any major currency, making it easy to purchase other assets such as funds or corporate bonds.
An Exclusive Investment Bond allows the investor to enjoy significant investment freedom by spreading and varying investments across a wide range of funds and/or different assets. This includes Bitcoins and all other cryptocurrencies.
Brief Tax Benefits of the EIB
- Allows investors capital to grow tax free and the option for the policyholder to take regular income withdrawals.
- For UK tax payers the income of 5% per annum can be taken tax free.
- Structured as a life assurance policy it offers the policyholder the opportunity to take advantage of several tax planning benefits, including arrangements that can help to reduce any tax liability on the death of the life assured.
- A life insurance policy has one or more “lives assured”, which means it will come to an end when the person(s) whose life is covered by the policy dies
- The policyholder has a choice of having one or more lives assured, to ensure the continuity of the bond in the event of premature death
- Where there is more than one life assured, the bond will end when the last person whose life is assured dies. The Company will pay a death benefit of 101% of the encashment value after notification of the death of the last life assured.
For more information contact Invest Global Management today.