Yes! It’s entirely legal — no unexpected tax bill in a few years’ time.
Not everyone will qualify but this is something you should seriously investigate if you are:-
- Aged over 50.
- A higher rate taxpayer with earned income.
- Have some personal savings/ investments.
How does this work? By exploiting the new pension freedoms introduced in this years budget which enables you to extract all of your pension fund in one or more lump sums. No pension necessary.
The secret is to make contributions which qualify for tax relief at 40% (wiping out some or all of your higher rate liability) and then, at some time in the future, (after age 55), take 25% of the fund entirely tax free and the balance over one or more years at just 20% tax.
The result — a rate of return many times greater than you would achieve on the 60% available for investment after you have paid your tax bill. Take a look at my previous blog for an example.
Want to know more? Put your name and email address in the box below so that I have your permission to send you more useful information and click the button on the right to arrange a complimentary 20 minute discussion to see if this is really right for you.
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