Originally posted by tomtomagain
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Legal Tax Mitigation - advice
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£40k invested every year at an average return (from stock growth, dividends and bond income) of 5% hits £1m after 15 years.
So pretty much going to hurt a lot of pension millionaire IT contractors.
First Law of Contracting: Only the strong surviveComment
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Originally posted by Crossroads View PostLet the tax tail wag the investment dog: VCT, EIS, SEIS...- Years 1-5 invest 10k into EIS/SEIS each year
- Years 1-5 reduce tax bill by 3k+
- After year 5, reinvest profitable previous investments (top-up if required) to continue reducing tax bill by 3k/year
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Originally posted by Eirikur View Post
I wish I had this "problem"
As stated by _V_ it's surprisingly easy to get close within a decade or two of saving. Over a 35 year working career easier still.
It's just something to be aware of. Not something to rule your life.
On a wider point, although minimising your tax is a sensible strategy, through a mix of ISA's, Pensions etc. But obsessively trying to get your tax rate to as low as possible can lead one down some dangerous paths ..... as the people on the "HMRC Scheme Enquiries" sub-forum will tell you.Comment
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Originally posted by tomtomagain View PostIn short, pension tax is complicated, and certainly not the free ride that some people assume. I see it as tax-deferred rather than tax mitigated.Comment
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