Assistance required please.
An IT contractor has asked me a question that I am not familiar with.
He asked whether he could "put funds in a bond to save 5%"
I presume the 5% relates to a tax saving?
Your thoughts would be appreciated please
Thanks
Balraj
Replies (4)
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My thoughts are
That the question is so vague that any answer is meaningless. Maybe he should speak to his accountant ?
5% withdrawal
Per year on qualifying chargeable event gains is probably what this refers to. Certain bonds can lead to a 5% income tax free annual withdrawal with additional tax charges if you exceed the limits.