Pensions have become more attractive as a shield against tax following the raise in capital gains tax (CGT) for high income earners according to Credencis.
The increase in CGT to 28 per cent gave more incentive to protect gains by moving assets into pensions.
By moving dividend income or rent from property into Self Invested Personal Pensions (Sipps), high earners could get tax benefits and shelter from capital gains tax.
Once shares are within a Sipp all growth is protected. Brian Flindall from Credencis says “It creates more reason to put assets into a Sipp because you protect assets in the future.”
“It makes sense to pay a little CGT now if that means avoiding a much bigger bill in the future.”
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