Invetsment Advice And Tax Planning Flashcards
How can non taxpayers and starting rate tax payers make best use of tax allowances
Choose investments that produce an income
How can losses be best used to mitigate cgt liability
Only bring forward enough losses to bring net gains down to annual exempt amount
How can you reduce cgt liability
Split transactions to straddle 2 tax years
Defer gains by reinvesting into EIS
Spousal transfers
Use entrepreneurs relief
What investments are tax free
NS&I savings certificates
ISA
Child trust fund or junior ISA
What considerations need to be made for a life assurance based investments
Tax position of fund
Tax position of investor during ownership
Tax position of investor at encashment
What is the benefit of investing in life assurance based investments
They are tax shelters as often pay less tax within the fund than if held directly
What is the tax position for the investor of a life insurance based investment
Non tax payers cannot reclaim fund taxation
Basic rate tax payers have no further liability
Higher and additional rate tax payers - have additional liability to pay of 20/25 %
What is the tax position of a qualifying policy on encashment
No tax on encashment if held for 10 years or 3:4 of the term
How can individuals leaving the UK minimize income tax
Keep UK income to a minimum
How can someone leaving the UK use offshore investment planning
Move deposit accounts offshore
Gilts - interest is paid gross if non UK resident
ISA can only be subscribed to if UK resident
Stocks and shares and OEIC/unit trust - no cgt if no UK res for 5 years
Investment bonds - encash once non UK res status is received
Letting property is taxed at 20%
