PLANNING SCENARIOS
Building connections with your clients
Shaped with input from advisers, our client scenarios are a great starting point for your conversations.
supporting your client conversations
The Scenario
Complementing pension planning
Pharmaceutical director Nylah has a total taxable annual income of over £360,000. This reduces her annual pension allowance to just £10,000. Nyla’s financial adviser suggests she explores the tax-efficient opportunities available from investing in a VCT.
The Scenario
Extracting business profits tax-efficiently
Limited company owner Raj takes income in the form of a salary and dividends, and now pays more tax on his dividends. His financial adviser explains how a VCT could help to reduce his income tax bill while earning tax-free VCT dividends.
The Scenario
Helping high earners reduce their tax burden
Finance director Reuben has received a bonus. Although adding to his pension would be tax-efficient, he doesn’t want to lock the money away until retirement. His financial adviser suggests investing in a VCT as a tax-efficient alternative.
The Scenario
Offsetting taxes on pension income
Marie retired with a significant pension pot and wants to withdraw some money from her pension but is conscious this will result in an income tax bill. Marie’s financial adviser explains how investing in a VCT could help offset her tax bill.
The Scenario
Making property rental income tax-efficient
Landlord Emma receives rental from buy-to-let properties, her sole source of income which leaves her with income tax to pay. Emma’s adviser explains how a VCT could reduce her tax liability and provide another tax-free income stream.
The Scenario
Surrendering a bond
tax-efficiently
Asher knows surrendering his investment bond would be a chargeable event, resulting in an income tax bill. Asher’s financial adviser explains how surrendering the bond and investing in a VCT could offset his income tax liability in full.
The Scenario
Helping additional-rate taxpayers use VCTs to earn a tax-free income stream
Dinesh plans to reduce his working hours before retiring and use part of his pension to supplement his income. His financial adviser explains how investing in a VCT could provide regular tax-free dividends while offering upfront income tax relief.
The Scenario
Offsetting income tax with recurring VCT investments
Jenna invests in VCTs each year to offset part of her recurring income tax bill. Her adviser explains how she could later sell earlier shares and reinvest the proceeds, subject to their availability for sale, to support her annual tax planning.
VCT planning scenarios at a glance
Thinking about VCT planning ideas to discuss with your client bank? Our menu gives you instant access to view and download all our client scenarios in one convenient document.
