ScotEq Int'l launches trust before tax deferral changes

Scottish Equitable International is urging IFAs to make the most of the 5% tax deferred withdrawal facility - which is tipped to be scrapped by the Revenue soon - by investing clients' money in a trust plan which will them to take regular 5% withdrawals from an insurance bond while deferring income tax. The Reserved Interest Trust - which will be launched on Monday - sets up a trust and the trustees then buy an offshore bond. The investor decides in advance to take a regular withdrawal of 5% each year for 20 years from the bond which, under current legislation, will not be subject to...