Mr and Mrs J Both in 70’s
- Combined Income of £70,000.
- Combined Tax bill £16,000
- Portfolio of £800,000.
- Premium Bonds £60,000
- Oher Cash £160,000
- Pension fund of £400,000. (still able to draw down £36,000 tax free.)
- Concerned about IHT, but do not want to give away assets.
Take £48,000 from Premium Bonds and invest into an EIS with a strategy aimed at exit in 3 plus years. use this investment to claim back tax paid in 2014.
Take £36,000 tax free cash from pension fund and use balance of Premium Bonds (£36,000 plus £12,000) and invest into an EIS for the year ending 2015.
End Result .
£96,000 ZERO rated for IHT after 2 years.
Tax saved £32,000. (even tax returned) Imagine a cheque back from the tax man.
A FULL AND COMPREHENSIVE MEETING NEEDS TO BE CARRIED OUT AND FULL FACTS OBTAINED ABOUT AN INDIVIDUAL’S CIRCUMSTANCES IS UNDERTAKEN BEFORE ANY RECCOMENDATION IS MADE. THIS EXAMPLE IS NOT A RECCOMENDATION.