Old Mutual International offers investors, through our Investment Portfolio+, a tax efficient way to invest their money. These include:
Tax on Growth*
It is Old Mutual Guernsey rather than you, the contract holder, who is responsible for the payment of any taxes that may arise within your Life Account 2. This is generally at a more beneficial tax rate than would apply if you held the investments directly, and could represent a valuable saving for you.
Tax when encashing*
Based on Old Mutual Guernsey's understanding of the current South African tax law, as a South African resident, you should not be liable for any further tax under current legislation when you encash your Life Account 2, as long as the legal ownership of the contract has not changed other than by way of death.
With Life Account 2 you are relieved from tax administration, that is often seen as a complex and time-consuming chore, especially for offshore investments.
*Tax rules could change in the future.
Next page - Risks