Richard Leeson, head of UK business development at Prudential International, says high earners can use offshore bonds to sidestep the worst effects of the tax rate changes.
The new income tax rules set out in Finance Act 2009 are about to come into effect. While higher earners may be expecting to be hit hard, offshore bonds offer an excellent opportunity to ease or even bypass the worst effects. There are two main areas where advisers could reassess what products will be most appropriate for their clients: The new 50% income tax rate The change to personal income tax allowances The new 50% income tax rate From this April, earnings over £150,000 will be subject to a new tax rate of 50%. This will apply to earned income and investment income that is...
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