Creaseys Tax Planning Seminar Tax Efficient Investment

1. Tax Planning Opportunities Peter Jackson B Ed (Hons), Dip PFS Certified Financial Planning Adviser

5. CGT Arbitrage Capital Gain of £100k Income tax relief of £20k Actual CGT due £18k Exit EIS at £100k 3 years Potential CGT due £40k Invest £100k into EIS

6. Potential Returns - to illustrate tax advantages only (Source: Octopus Investments) Assumed performance over three year period Income tax relief only Income tax and CGT relief Initial investment 100,000 100,000 Less income tax relief (20%) (20,000) (20,000) Less capital gains tax deferred at 40% - (40,000) Effective cost of investment 80,000 40,000 Net exit proceeds (net of fees, commissions, AMC) 100,000 100,000 Tax-free return 20,000 60,000 CGT to pay at end of three years - (18,000) Net tax-free returns 7.7% p/a 35.7% p/a Gross equivalent return (to a 40% taxpayer) 12.9% p/a 59.5% p/a

8. Potential Returns - to illustrate tax advantages only Assumed performance over three year period Income tax relief Initial investment 100,000 Less income tax relief (20%) (30,000) Less capital gains tax deferred at 40% - Effective cost of investment 70,000 Net exit proceeds (net of fees, commissions, AMC) 100,000 Tax-free return 30,000 Net tax-free returns 7.3% p/a Gross equivalent return (to a 40% taxpayer) 12.2% p/a

13. Any questions?