IT Contractor tax saving question

IT Contractor tax saving question

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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



Replies (4)

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the sea otter
By memyself-eye
16th Aug 2015 13:41

My thoughts are

That the question is so vague that any answer is meaningless. Maybe he should speak to his accountant ? 

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By Duhamel
16th Aug 2015 15:27

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.

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By JCresswellTax
17th Aug 2015 10:28


Why don't you tell him to go speak to an IFA to get the investment advice he needs?

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