No.
I am talking about investing in UK Venture Capital Trusts. Which are CGT tax free and dividend tax free for investments of up to £200,000 a year.
I give you an example of how a wealthy UK couple can live tax free in UK....
Both husband and wife invest £200,000 each into i.e the Mobeus Income & Growth VCT (LSE:MIX). The fund produces an average dividend of 15.5% over last 5 years. The dividend is tax free and︀ so is any CGT if they decide to sell. So they have invested in the︁ fund £400,000 between them for the last 5 years which is £2,000,000 in total. They︂ receive an average of 15,5% dividend in the current year so £310,000 dividend. As per︃ HMRC rules they do not have to pay tax on that dividend or even declare︄ it on their tax return. They are in effect living tax free in UK with︅ no filing requirements if that is their only source of income.
--- quote start
Individuals aged 18 or over who acquire ordinary VCT shares (whether by subscription for new shares︆ or otherwise) are exempt from income tax on dividends in respect of shares acquired within︇ the ‘permitted maximum’.
The permitted maximum for acquitedVCT shares is £200,000 (by market value) in︈ a tax year for 2004-05 onwards (a year beginning on 6 April and ending on︉ 5 April in the following year).
Investors who receive exempt dividends do not have to︊ show them on their tax returns and HMRC officers should not assess investors on exempt︋ dividends.
--- quote end
If they continue the process of compounding these investment returns using︌ their maximum allowance for VCT of £200,000 each you can see how they can build︍ wealth in UK tax free over the long term while living in the UK as︎ UK citizens. As you know Venture Capital funds (VCT's) although they can be diverisifed are️ high risk as your investing in startups where failture rate is high and loses need to be offset by winners just like crypto, Hence your dependent on track record of investment manager etc.
You can use your own figures to see if it makes sense but should be a part of any investment portfolio you develop due to tax advantages if offers as a UK resident.
I am talking about investing in UK Venture Capital Trusts. Which are CGT tax free and dividend tax free for investments of up to £200,000 a year.
I give you an example of how a wealthy UK couple can live tax free in UK....
Both husband and wife invest £200,000 each into i.e the Mobeus Income & Growth VCT (LSE:MIX). The fund produces an average dividend of 15.5% over last 5 years. The dividend is tax free and︀ so is any CGT if they decide to sell. So they have invested in the︁ fund £400,000 between them for the last 5 years which is £2,000,000 in total. They︂ receive an average of 15,5% dividend in the current year so £310,000 dividend. As per︃ HMRC rules they do not have to pay tax on that dividend or even declare︄ it on their tax return. They are in effect living tax free in UK with︅ no filing requirements if that is their only source of income.
--- quote start
Individuals aged 18 or over who acquire ordinary VCT shares (whether by subscription for new shares︆ or otherwise) are exempt from income tax on dividends in respect of shares acquired within︇ the ‘permitted maximum’.
The permitted maximum for acquitedVCT shares is £200,000 (by market value) in︈ a tax year for 2004-05 onwards (a year beginning on 6 April and ending on︉ 5 April in the following year).
Investors who receive exempt dividends do not have to︊ show them on their tax returns and HMRC officers should not assess investors on exempt︋ dividends.
--- quote end
If they continue the process of compounding these investment returns using︌ their maximum allowance for VCT of £200,000 each you can see how they can build︍ wealth in UK tax free over the long term while living in the UK as︎ UK citizens. As you know Venture Capital funds (VCT's) although they can be diverisifed are️ high risk as your investing in startups where failture rate is high and loses need to be offset by winners just like crypto, Hence your dependent on track record of investment manager etc.
You can use your own figures to see if it makes sense but should be a part of any investment portfolio you develop due to tax advantages if offers as a UK resident.
