Does no income tax on dividends and no additional CGT liability sound good? Maybe you could consider a qualifying savings plan.
Qualifying Policy Rules
- Must have a minimum term at outset of 10 years
- For benefits to be free of additional tax, 75% of the premiums due must have been paid or 10 years worth of premiums (Whichever is the lower)
- Must offer life cover of 75% of premiums payable over the term unless over age 55
- If over age 55 the life cover can be reduced by 2% for every one year over age 55
- Premiums must be paid annually or more frequently
- If the above policy criteria is met then the proceeds of these policies are tax free
Benefits of using a qualifying savings plan
- Provided 75% of premiums have been paid (or 10 years) benefits are tax free
- At maturity (10 years) tax free income can be taken
- No further income tax on dividends and no additional CGT liability
- Ability to write on a revert to settlor basis for IHT purposes
- Gift to children/grandchildren using “girts out of normal expenditure”.
- Fund switches do not create a tax liability
Ask us for more details admin@lyndhurstfm.co.uk
