How small caps can cut your tax bill
With the government seeking to squeeze money out of us over the next few years, individual savings accounts (Isas) look especially appealing. Not only do you not have to pay any tax on any capital gains, dividends or interest, but there are also no taxes on withdrawals, unlike with pensions. Raj Mody, global head of pensions at accountancy giant PwC, estimates that if the recently announced freeze to the pension lifetime allowance (LTA) stays in place “someone aged 50 now could be £85,000 worse off in tax by the time they reach retirement”. This is
