With over $12bn under advisement, deVere Group has reported a 35% year-over-year increase in client inquiries over the last year about the transfer of shares into investment vehicles like personal portfolio bonds.
The strategic movement or realignment of shares in a portfolio is referred to as a share transfer.
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“With governments worldwide grappling with economic challenges and seeking to shore up revenues, the tax burden for individuals is inevitably increasing,” said deVere Group CEO Nigel Green. “Against this backdrop, investors are increasingly recognising the importance of tax-efficient strategies and share transfers have emerged as a key tool to navigate the growing tax liabilities.”
He carried on: “We’re witnessing a growing awareness about the importance of tax efficiency to grow and protect wealth. Share transfers typically represent a powerful strategy to navigate the tax landscape while optimising investment portfolios for long-term success.
“Unlike selling shares, which can result in immediate capital gains or losses, transferring shares to another person or entity may not incur taxes at the time of the transfer. Instead, tax consequences may be deferred until a subsequent sale by the transferee.
“By not triggering immediate taxation, investors may have the flexibility to manage their tax liabilities in a way that aligns with their overall financial and tax planning strategies.
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By GlobalData“In addition, gift and inheritance tax laws usually provide exemptions or reduced rates for such transfers, allowing individuals to pass on assets to family members or heirs with potentially lower tax implications than a sale.”
According to deVere, there are major tax benefits when shares are transferred into an investment vehicle like a personal portfolio bond (PPB), which is appropriate for most nationalities.
For lump sum investments, a portfolio bond is a globally tax-efficient insurance product.
Fundamentally, it is designed to hold any kind of asset, including cash, stocks, bonds, and funds. This enables users to centralise assets and eliminate the administrative hassles that come with managing a complicated investment portfolio.
Personal portfolio bonds are proving to be very appealing for reasons other than just tax efficiency, stated Green.
“With a PPB, less time is spent on tedious time-consuming administration, there’s enhanced personal and asset privacy and security; and flexibility which allows access to income and capital at any time.”
In conclusion, he added: “As governments continue to find more ways to boost tax revenues, often through stealth measures, we expect the growing trend for share transfers to increase as more people will seek ways to mitigate the burden and preserve their capital.”
