Tim Searle, founder and chairman of HNWTAX, has been advising international high-net-worth individuals on estate and tax mitigation planning for 30 years. In recent years, changes to UK tax laws have ushered in significant changes to the ways international investors are structuring their wealth. You can also see him on our list of the Top Middle Eastern advisors.

Proposed solutions: Searle promotes alternative strategies to avoid tax exposure, including the use of insurance-based solutions. He brokers private placement life insurance (PPLI) policies that can cover large tax liabilities. 

Also read the Citywealth article on fresh insurance strategies for UHNW clients

“Tim Searle, Managing Director at UHNW Tax and former Royal Naval Officer, jet-setter, classic car enthusiast and entrepreneur who helps UHNW clients with tax says, “The recent Budget offered no good news in terms of inheritance tax whether you are a farmer or an overseas investor in London realty. However, the latter have options open to them that most Brits do not in terms of planning for this eventuality. There is though, another option, which is using an insurance contract to pay the IHT bill.”

He explains, “The challenge is that most of the insurance contracts that deliver this result are not in the UK, are not widely known or understood by UK lawyers or trustees and, therefore, regularly overlooked. These are dynamic insurance contracts that grow in line with the ever-increasing IHT bill liability with the ability to recoup all premiums should the property be sold in future. In my mind it should feature in any planning discussion with wealthy overseas investors of UK property to give them the confidence to tackle this tax and hopefully keep them investing in UK.”

As to who is offering this type of insurance, Searle says, “It is the major insurance groups like SwissLife, Manu Life, TransAmerica and Sun Life who are all A+ companies with billions in assets and are more than 15+ years established. Each insurance company offer different policies are best used through an advisor. In terms of UK inheritance tax, I favour cash value policies and these typically derive from jurisdictions like Luxembourg, Singapore and Hong Kong.”