Offshore bond gain and pension cont
Yonkers420
Member
Hi All, i have a client who has earned 70k this year and has a bond gain of £140,000... lets just assume for the purposes of my question that the only option is to encash this year. The bond has run for 20 full years and so am i right in thinking although shes gonna lose the Personal allowance, if we can make a pension contribution to get her income low enough so that the slice falls within the BRT she could effectively pay 20% on the whole gain... which would save £0000s as opposed to not making one? Have i missed anything?
She has enough carry forward and we cant assign the segments. Cheers
Comments
Yes.
Bond gain tax calcs from Old Mutual or Pru will help show the impact of this strategy.
Cheers @richardgough