Income Tax Mitigation 

If you are a higher rate tax payer then typically over half of your earnings will go in tax. We have a number of solutions that will enable you to avoid this. However they all have their advantages and disadvantages. Please contact us to discuss the right solution for you. Here are some of the more common solutions:

• Payments to Approved Pension Scheme
• Investment Into Protected EIS  
• Investment In VCT
• Strategic Tax Solutions 

Payments to Approved Pension Schemes

Contributions to an approved pension will provide tax relief at 100%. Our role is to advise on the suitability of of the various types of scheme, the investment you make and assist with your own self investment where required. Options available include stakeholder, personal pension, SIPP, SSAS and Group Schemes. 

In specie contributions enable you to transfer a pensionable asset (or part thereof) into your pension instead of cash. Again please contact us  to discuss how this may work for you.  

Protected Enterprise Investment Scheme (100% tax relief)

We have a protected (low risk)  EIS investment which provides a regular monthly income and provides tax relief at 100% for basic rate tax payers and 50% for higher rate tax payers. You need only hold the investment for 3 years in order to obtain full relief. 

• Invest with the most prestigious UK provider of EIS Investments

• For every £1000 invested the cost is £800 due to 20% tax relief
• Talk to us about deferring existing capital gains with EIS
• Talk to us about mitigating Inheritance Tax using Protected EIS

Read about the Government EIS Scheme 

Investment in Venture Capital Trust (100% tax relief)

As a basic rate tax payer you will receive 100% tax relief and as a higher rate tax payer you will receive 75% tax relief. Not only is there tax relief on the investment but the dividend income is tax free also. Hence all repayments tend to be made as dividend as there is no tax to pay on this income. The VCT must invest in small (market capitalisation less than £7m) companies. Hence they tend to be high risk. 

However we only recommend one VCT which is a market leader with an impressive track record of 29% annual investment growth. You must hold the investment for 5 years in order to retain the tax relief.

We also have a solution combining VCT investment with later transfer to SIPP. If the VCT investment doubles in 5 years then with tax relief included the total return on investment works out at 11 times.  

Strategic Tax Solutions (100% tax relief)

We provide a small number of  income and bonus strategies that typically utilise off-shore structures to avoid tax. They are only available for individuals with taxable income over £200,000. These are contentious strategies and as such the tax benefits must be compared with the failure risk. If you have taxable income in excess of £200,000 please contact us to discuss how we might help.