For many years, certain tax planners used life insurance as a means of avoiding capital gains tax (C...
For many years, certain tax planners used life insurance as a means of avoiding capital gains tax (CGT) on private company shares. Does a recent case drive a final nail in the coffin of this planning? The basis of the planning was to use the tax efficient life wrapper to avoid CGT on the sale of a private company. Because the sale happened within the bond, no CGT was chargeable and the cash could remain in the bond until the policyholder was ready to take the benefits. In addition to this, some bonds would be set up in the ownership of an offshore company. The thinking here was that, due t...
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