Let’s cut straight to the chase. This is not for everyone. It is only worth exploring further if you can answer “YES” to ALL of the following questions:
- Do you pay higher rate tax on earned income?
- Are you age 50 or over?
- Do you already have medium term investments/savings?
- Do you expect to revert to paying only basic rate tax at some time in the next 10 years?
If you answered “YES” to all four questions this is certainly worth exploring.
I promise you this is totally legal, known to HMRC, and is in no way treated as tax avoidance. It utilises the pension tax changes introduced in 2015 which is why it is only really applicable to the over 50s.
If you are over 50, a higher rate tax payer, and have savings/investments this is a “no brainer”. Why would you not claim back all the tax you have paid at 40% and then in a few years (or even immediately if you are over 55) withdraw 25% tax free and the balance when you only pay tax at 20%?
A blog of this nature is not the right place to go into details so if you are interested just send me an email with “Richard, do I qualify?” as the subject and I will email you the link to the full report.
To benefit in the 2019/2020 tax year this has to be completed by 6th April 2020 which is not a great deal of time so please get in touch soon if you are interested.
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IMPORTANT INFORMATION
This document and our on going services are not personal advice. We'll give you all the help and guidance you need to make your investment and retirement decisions, but we can't advise you. If you're not sure whether you need regulated financial advice we can put you in touch with a suitably qualified and experienced regulated adviser. Because we are not regulated by the Financial Conduct Authority you will not have access to the Financial Ombudsman Service in respect of any complaints. If you use one of the "no advice" on line services to handle investment transactions they will be Regulated and you will have access to the Ombudsman and The Financial Compensation Scheme in respect of their services. The value of investments/pension plans can fall or rise depending on market performance. The Retirement Team and The Investment and Retirement Coach are trading names of Capture Success Ltd Reg No 01825075 Tel 07770575122
