Originally posted by LisaContractorUmbrella
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Under the LDF you either pay tax on income at the normal chargeable rate or you can elect to pay a composite rate of 40% of all income, gains etc with no reliefs available. You then pay 10% penalty on that sum for the element relating to the first 10 years and 20% for the later 3 years if HMRC had already told you about the LDF (otherwise 10% penalty continues).
Not quite the 10% and 20% stated!!!
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