RE: Your welcome to my 11p per…23 Aug 2023 22:09
JG68, great input..
I don’t really want to discuss my own tax affairs on a open forum like this but at the same time nothing to hide..It’s not only the potential problem of putting your own foot in it but why would most posters want to put them self in the firing line just to see if you can get hit by HRMC. Or J HUNT while making a mute point.
But there are lot’s of Legitimate legal ways of “tax avoidance” that can be googled or if you are keen to pay even more tax they will be very happy to take it from you. …FYI.. A bed and ISA is where you sell an investment and repurchase it with your ISA funds…. In the bed and spouse strategy, you sell an asset for a loss to take a capital gain exemption and have your spouse or partner repurchase it and transfer it to you.
You can transfer the shares but Cap Gain will be born by the seller if indeed they do or transfer again. Shares can be sold and the same shares immediately bought back in a pension, such as SIPP, which allows self-investment. This won't trigger bed and breakfast rules for capital gains tax as the shares are being purchased by the SIPP trustees/administrator and not personally by the investor. Doing this avoids being out of the market for 30 days…..
But the advantages don’t stop there. Where the sale proceeds are used to make a pension contribution, this could attract 20% tax relief which is added by the pension provider. Further tax relief for higher and additional rate tax payers may be claimed via self-assessment.
In addition, holding the investments within a pension means that there will be no CGT on future gains and the value of the investment is generally outside the estate for IHT. Of course, using the pension wrapper may not be suitable if the money is needed before age 55.
Blah, Blah, Blah… We all should pay tax, it’s just a question of how good your advisors are and how MUCH tax you are happy to pay. As Mr J Cricket said: Let your conscience be your guide…or was that Keith Chegwin.?
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