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bigduckontax
bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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I am caught earning more than 100,000 this year and losing

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I am caught earning more than 100,000 this year and losing some personal allowance. I am retired and have reached lifetime limit. Would investing in VCTs and claiming tax relief be allowable to reduce effectively my total income and so get below £100,000 ?

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

If your income goes above 100K you loose your Personal Allowance (PA) at one pound for every two quid over. You can reduce this by the use of VCTs.

My lifetime limit I assume you mean your pension pot?

Customer: replied 8 months ago.
my pension pot, which I now drawing. So sounds well worth while to put some money into VCTs . I realise the risks but should save quite a bit. Thanks

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