|Welcome to The Informed Investor.1972-2010
Press Control+B to Bookmark this site for later reference.
Informed Investor Golden Services
Click on picture below to utilise the service you require
|NOTICE: In regards to the Direction by The
of The Exchequer, Hovis, all tax avoidance plans are being operated by
off-shore company and are created in consultation with the clients as
- off plans for that client only. Most of the plans listed below are
defunct but give an idea on the type of plans we have been writing
1966. Drummond & Co will be pleased to introduce those interested
Tax Mitigation to the off-shore company, who are under no obligation to
For the information of the Inland Revenue you can read up on all the plans we utilise by reading the Statutes of England and Wales. They are all in there.
Please click on to sections that interest you
for NIC mitigation plans
Boxes written in red- details will be sent- please E-Mail to:
SO ACT NOW.
Our “A Team” of tax experts believe that the Chancellor is going to close two loopholes in tax law in the mini Budget in November.
These loopholes revolve around:
a) Mitigating tax in trusts with stock pile gains (tax at 64%) often referred to as pre 91 trusts.
b) The use of Second Hand Bonds to mitigate Capital Gains Tax in a company and personal CGT in this tax year.
The minimum gain that our experts will work with is £1m (or two clients with £500,000 each).
The fee is £30,000 upfront (excluding Counsel’s Opinion) with a total fee payable of 25% of the tax saved which is contingent on the strategy working.
The introducing professional will receive 15% of the total fee for effecting the introduction.
A number of Dotcom executives sold shares in the tax year 1999 / 2000 and made a fortune. Most paid tax on this gain.
Our experts have a strategy for reclaiming any Capital Gains Tax paid on behalf of your clients – minimum £1m.
The fee is 25% of
reclaimed with you receiving 15% of the total fee.
CAPITAL GAINS TAXREDEMPTION POLICY
This scheme is for a UK resident taxpayer - company or individual - who has made or will make in the future, a chargeable capital gains of assets in the current accounting period or tax year respectively. The Capital Gains Tax can be substantially reduced or eliminated.
Simply this is done by the person or company buying an asset which loses its value on the day of purchase in favour of an enhanced value in the future.
The instrument may be paid for in cash, an existing share, unit trust or bond portfolio, unlisted securities such as private company shares or other property. The existing assets are “rolled over” into this plan. The discounted rate is accepted by the Revenue.
An Investment portfolio of say £100,000 could drop in value to £6,801. Reducing CGT or maybe even creating a Capital Loss However the client may withdraw an interest free loan facility to ensure that moneys can be made available as and when they are needed. This plan relies on the use of a little known instrument underwritten by a Financial Institution. (Further details available on CAPITAL REDEMPTION PLANS )
This plan uses the system as the Capital Gains Redemption Plan except that its aims are to mitigate Inheritance Tax. Quite simply the same instrument is used. If it is taken out on a Personal basis, the value will drop on purchase and will have a smaller value on the death of the Purchaser. After the death, the beneficiary may borrow against the full value even though the Inheritance Tax is only applicable on the redemption value. (Further details available on CAPITAL REDEMPTION PLANS )
(CAN BE USED TO REPLACE THE OLD " BENEFIT IN KIND" SCHEMES)
For Professional advisers who advised on our former "Benefits in Kind" ORIENTAL CARPET SCHEME and are in discussion with the authorities in regards to them please read our link page on this DEFENDING THE CARPET SCHEME (Click on blue line)
A Company purchases the same asset as for the Capital Gains Redemption plan (CGRP) for £100,000 as a genuine Capital loss for the Company and then give it to the Employee or Director. They would be giving £6801 not £100,000 to the recipient who would then pay tax & NIC on the £6801.
Presuming the recipient is paying 40% tax if he were to receive £100,000 normally he would pay £40,000 income tax and the Company would pay £10,000 NIC. = Total of £50,000.
If the Company purchased the CGRP for £100,000 and then gave it to the recipient the amount received would only be valued at £6801. Charges would be Income Tax 40% of £6801 ( £2720.40) + Company NIC @ 10% = £680 plus policy charges of 10% = £10,000- Totalling £13,400 a saving of £36,600. The Recipient can then take advantage of the Interest -free loan back on the CGRP
COMPARE THIS TO THE SAVING OF ONLY £10,000 under the old "benefits in kind" schemes and you will understand one of the greater benefits such a plan will give. (See on CAPITAL REDEMPTION PLANS)
Employee Benefit Trusts
Fees are dependent on how many personnel are involved.
Call for Personal attention on this plan.
If you are earning £1000,000 pa with Bonuses would you rather pay your income tax to the tax man or invest it for your ultimate benefit?
To do so you should consider utilising the tax benefits of a British Film Investment scheme.
A partnership is established to include a corporate partner and a managing partner. Individuals who wish to shelter their income tax are invited to join the partnership to acquire and exploit a British made film.
An individual who makes a loss in a new trade can offset the loss against his taxable income for the current year and also the previous three years.
Under present legislation the total cost of a new British film can be written off for tax purposes in the year of acquisition.
The partnership makes a tax loss in its first period of trading which enables the partners to offset the loss against their current year liabilities to reduce these to nil and to claim repayments for past years.
The partners will subscribe 30% of the cost of the film as partnership capital and borrowings fund the remaining 70%. As such, the cash cost to the individual partner will be half of the tax bill to which it relates.
If the film is profitable then each individual partner will share in that profit which is taxable.
As the partnership will also have a performance guarantee amounting to 80% of the cost of the film the individual partner will halve his income tax rate if the film is a total failure.
The partners are committed to the partnership for 3 years before they may resign. However, they have the opportunity to reduce their involvement by up to 70% by selling their interest to other existing partners.
Individuals with significant amounts of taxable income. The amounts will vary according to the cost of the film but the minimum loss available to a partner will be approximately £180,000.
INTEGRA /MERCURY MANAGEMENT CONSULTANTS LTD are able to assist companies and individuals in many ways. They are offering to give a useful FREE initial business assessment on their needs for tax saving, cost control and full compliance with current tax and company regulations.. If you like what you hear, you can then retain them at a reasonable cost to advise you on :
NEW PENSION PRODUCT
Do you have
who are approaching retirement age and have to purchase an annuity but
not want to give away their capital ?
If you carry on a U.K. Business profitably or have access to profitable investment opportunities and ( in either case) you wish to enjoy some of the profits free from U.K. Taxation, this plan can achieve it for you.
Underlying the arrangement money provided to an accredited U.K. incorporated resident life assurance company so as to form part of its overseas life assurance fund can be made available for investing in UK businesses or assets so as to generate tax-free business or asset profit and benefits for the participants.
There is no need for anyone to purchase any life assurance policy or institutional investment as a condition precedent to participation. The participant is wholly responsible for the conduct and management of the trade or business activity, over which he maintains constant contact and domain. All that is needed is a profitable trading or business or investment activity; a willingness on the part of the principal to work; and an ability to provide his own financial management.
The way the plan works involves the formulation of a partnership between a Life Assurance Company and the operator of a business being a partnership the object of which is the carrying on of the business in common as between the operators of the business in common with the Life Assurance Co. and with a view of profit for the benefit of all parties to the partnership.
The partnership will be organized so as to operate as a limited partnership and be under the Limited Partnership Act of 1907. The usual arrangement envisages the Life assurance Co. receiving 80% of the partnership profits with the remaining 20% going to the partnership operators who nevertheless take a minimum amount - say the first £20,000 of profit.
The object of the agreement is such that from the remaining 80% of the profits which are deemed part of an overseas life assurance fund which is not subject to United Kingdom taxation the moneys can be:
The effect is that the 80% of the profits are “tax free”. The charge or operating this plan would be 10% of the 80% per annum.
This is only applicable to those who are in employment, not individuals who are self-employed. The establishment of an offshore FURBS will form part of the individual commercial remuneration package as a director of a company. It will not impinge upon any existing pensions arrangements.
A company can set up a scheme for each individual or there can be more than one member of a company scheme. If there is more than one member, each individual's fund within FURBS is kept separate.
The FURBS is established by entering into a Trust Deed & the payment of the premium on behalf of each member. Each member is taxed as a benefit in kind on the amount of their contribution at their marginal rate for the year of contribution.
The offshore FURS itself is tax exempt & suffers no tax(
than a possible withholding tax) on its income or gains. They are taxed
on the profits on benefits taken. However the member may borrow from
FURS or get the FURS to purchase assets. ( Property, shares, works of
etc.). Any debt on the FURS by way of loan is a debt on the estate
the member die. If the member becomes a Non-UK resident he can take the
proceeds Tax-free. Always accessible.
If you have clients who are in debt or considering personal
our Personal restart programme may be of use. Debts are re-structured
credit card debt re-negotiated. We also lead potential bankrupts
the maze of bankruptcy law.) please contact us for details.
For further details on legal, taxation and non FSA advice
on this page Contact::
24 hour Hotline Tel:
Fax : +44(0) 845 862 1954
As part of
& Co's quest for efficient vehicles to mitigate taxation we
that professional financial advisers consider the use of THE
REDEMPTION POLICY to mitigate both Capital Gains and Inheritance Tax.
can also be used as a more proficient way to mitigate Income Tax &
National Insurance Contributions. These policies are little known, but
in the field of tax mitigation.
" Nothing is more certain than death and taxes" - Benjamin Franklin
Mr Franklin may well have been right but the certainty that one leads to the others has been challenged for many years. Not only that but the accepted natural consequences that investment profits and gains, especially those generated by our own efforts, fall to be taxed is continuously scrutinised by the legal and accounting professions. With significant success.
The legitimate reduction or elimination of taxes and duties which become payable on crystallising gains or death has been a professional preoccupation for many years.
The widely held
is that such revenues are unfair because the wealth has been created by
sheer hard work, and that the tax has previously been paid on the
It enables them, at rates which have been accepted by the Inland Revenue, to:
The Capital Redemption Policy is straightforward to establish. The range of acceptable assets to invest in, including private shares, land and property, and to retain is exceptionally wide. The benefits are proven.
A Capital Redemption Policy is a capital redemption contract
in exchange for the payment of a premium. The premium may be cash, an
share, unit trust or bond portfolio, unlisted securities such a private
company shares or other property.
In transferring the premium to the Endowment Company and receiving a Capital Redemption Policy in return you are in fact substituting a new, single asset for your current assets. The existing block of assets has created current or potential tax liabilities leading to income tax on interest dividends or other income arising; capital gains tax on growth in value of certain of the assets and possible inheritance tax liabilities when you eventually die and leave your estate to beneficiaries.
The new asset you
in return is completely different. It is a policy issued by an
Company which is linked in value to a Special Account. For example,
the value you have transferred is now within a CAPITAL REDEMPTION
which cannot be accessed during the term of each policy, the value of
policy is discounted at a rate which has been previously accepted by,
agreed with the UK revenue. Just as the redemption value of certain
, Government gilt-edged securities trade at well below their par value,
so the current discounted value of your capital redemption policy is
below the value of the assets identified with the linked fund. This
basis will substantially reduce the Inheritance Tax liability on your
The basis of discounting and the fact that policies of capital
are subject to Capital Gains Tax additionally means that CAPITAL GAINS
on the transfer can also be significantly reduced.
form part of the Assurance Company's long term funds and thus the
taxation treatment of the Endowment Company is " wrapped around" your
recommended investments. This tax treatment currently means no
liability to corporation tax on income and gains arising within the
funds. Your fund essentially can grow in value on a tax free basis.
An example may help
explain the attributes of the Capital Redemption Policy. Mrs.
is a widow aged 65. Her husband died two years ago and left his entire
estate to her. Her assets are now worth £1 million and comprise
of her home valued at £195,000, a savings account with a Building
Society worth £55,000, an investment portfolio recently valued at
£250,000 and shares in her late husbands business valued at
£500,000. The gain on the investment portfolio and private shares
The Lawyer concerned is in possession of legal opinion on this scheme but will only show it to prospective clients and will not allow copies for distribution.
|If you have a Tapaz ID you can request more
Capital Redemption Policies, by entering your ID and pressing Tapaz.
The rate of taper relief is different for business and non-business assets. As non-business asset taper relief is ineffective for ownership periods of less than 3 years, and as some asset disposals are identified on a last in first out basis, you may consider investing through a collective investment scheme or an investment trust.
Where assets have been received by way of a gift and subjected to holdover relief then the ownership period commences from the date of the transfer. Any accrued taper relief is lost. The timing of any disposal, the person making the taxable disposal and the period of ownership will have an effect on any potential tax liability. As the effect of full business taper relief is to reduce the effective tax rate down to 25% of the nominal rate ( i.e. to as little as 10% for a higher rate taxpayer), it is an extremely valuable relief.
There are to be changes in the budget that will result in full taper being available after 5 years. However it is not known whether the enhanced relief will apply to all business assets or only to those acquired after a set date. Non business taper is expected to continue to be available over 10 years, giving a maximum reduction of 40% i.e. an effective maximum rate of 24%.
Annual exemption/tax rate
Each individual is entitled to an exemption from tax on chargeable gains of up to £7100. Assets held in a bare trust for a child are treated as belonging to the child and the child's annual exemption and basic rate band is available in taxing any gain arising on a sale. The ability to use the child's personal allowance for income tax with a bare trust was removed last year.
Gains in excess of £7100 are liable to tax at 20% or, for higher taxpayers, 40%. You may consider crystallising a gain to use the annual exemption, or a loss in order to use the relief, by selling and buying back the asset.
There are, however, complicated rules that govern the identification of sales and acquisitions of stocks and shares which need to be taken into account. Trusts are entitled to a lower tax exemption ( generally £3550) and most are liable to tax at 34%. It may be possible to use holdover relief for gifts to individuals and trusts in order to realise a gain at a lower rate of tax. Clearly taper relief may be extremely valuable and care is needed to ensure that the ownership period is not effectively reduced.
Hold - over Relief
For assets generally, it is necessary to subscribe for shares in a qualifying company or a venture capital trust ( subject to certain monetary limits). In addition to providing for deferral of the capital gains tax charge, at up to 40%, there may also be an income tax reduction of 20% where the company qualified under the Enterprise Investment Scheme or as a Venture Capital Trust. Gains arising on gifts of business assets to individuals, or on the transfer of any asset into a discretionary trust, can also be held over. In the November pre-Budget report it was announced that it is no longer possible to holdover a gain on certain gifts into a company. Gifts to charities are free of capital gains tax. From April 2000 you should be able to make a gift of quoted shares to a charity, avoid any capital gains tax and get income tax relief on the gift.
often favoured a tax on death and on capital transfers. Whilst
relatively little tax, it looks increasingly likely that inheritance
not be strengthened until after the next election.
There are, however, features that may be curtailed. In last year's Finance Act, the ability to gift an interest in a residence, whilst continuing to live in it, was severely restricted.
It is important to note that the basis of valuation for IHT is the "loss to the donor" rule i.e. how much worse off the donor is, not how much better off is the donee. It is also important to note that property owned by the husband and wife may be related for valuation purposes.
Although transfers between UK domiciled couples are exempt, husband and wife are regarded as separate persons and have their own reliefs and exemptions. In appropriate circumstances the reliefs may be doubled up by husband/wife transfers followed by a gift to the intended beneficiary.
Exemptions and Reliefs
A very useful relief, for those with surplus income, is that for normal expenditure out of income. The gift should leave the donor, over a period of time, with sufficient to maintain their normal lifestyle. However, a pattern of behaviour needs to be established in order that the expenditure can be regarded as normal. For substantial, ad hoc gifts, the potentially exempt transfer (PET), which becomes exempt provided the donor survive 7 years is considered to be very generous as there is no monetary limit and the gift can be into certain trusts. Last year, a requirement was imposed on executors to report the value of gifts made in the 7 years prior to death.
Monetary limits may
introduced in relation to PET's and the survival period could be
For smaller gifts the annual exemption of £3000 ( which may be
forward one year) should be used regularly.
spokesman has said that the nil rate band ( currently £231,000)
considered to be reasonable in the context of the current rate
A lower limit may, however, be introduced together with a lower tax
for modest transfers. The nil rate band is particularly useful in the
of transfers into discretionary trusts, especially as capital gains tax
relief may also be available. This relief could well be removed.
The 100% reduction in value for the transfer of some business and agricultural property has often been suggested as being extremely generous, especially as there is no capital gains tax on assets owned at death. One or other could be restricted.
Whilst it is, at present, possible to vary the way an estate is distributed, it may not be practical to do so. All parties affected must agree to do so within two years of the date of the death. Where infant children or charities are beneficiaries, the problems multiply. Further, the ability to vary a will has been challenged in parliament in the past and the tax efficiency of doing so may be curtailed in the future. The most sensible course of action is for taxpayers to ensure that they will have a will and to continually review their circumstances and the consequences of leaving a will unamended.
List of Interesting UK Sites
It's well worth the money
|Think all banks are the same? Think
again. No hassles. No
late payments. No unexpected charges. Just real help with your finances.
Welcome to thinkbanking.
|No credit check bank accounts|
|Bank accounts for bad credit||IVA bank accounts||Bankrupt bank accounts|
Ways to bank with us
current account that helps you budget
Our account has a budgeting service built-in. We'll look after all your regular bills and payments, so you know exactly what you can spend on the good things in life. You get:
thinkbanking Debit MasterCard®
Our thinkbanking card gives you instant access to your cash.
Compare a wide range of mortgages and find the best deals from a panel of lenders.
Get a quote
Our free credit card comparison table makes it easy to compare the best offers.
Whether you're saving for the long or short term, our savings account could be right for you.
How our account works
See our simple step-by-step guide to how the thinkbanking account works.
Find out how it works
We're not like other banks. Find out more about our values, awards and charity work.
Read more about us
|No credit check bank accounts||Bank accounts for bad credit|