Sav Pens Inv 06 Investment 05 Doomed Disposal
Doomed disposal or should i say Deemed Disposal is a requirment that a consuer reports their gains at the 8 year point and pays tax.
this tax is currently calucalted at 38% of gains.
Many people feel very frustrated as the payment of this tax requires:
* a tax return (which might not otherwise be required)
* payment of cash which has not been reqlised and must therefore be paid from day-to-day cashflow, or requires encashment of some of the funds,
* this prevents compounding of those early investments
If investments were made on an annual basis, then the consumer could find themselves in a position of needing to make an additional statement of gains in year 9, 10, 11, and so on - based on the gain on the purchase made each 8 years beforehand
05 Sep 26
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