6. Using Blackflame’s EIS to Eliminate
Income Tax
£100,000
BLACKFLAME
EIS
Year 3
£30,000
UPFRONT
TAX RELIEF
£45,000
UPFRONT
TAX RELIEF
£45,000
UPFRONT
TAX RELIEF
£30,000
UPFRONT
TAX RELIEF
£30,000
UPFRONT
TAX RELIEF
£30,000
UPFRONT
TAX RELIEF
£150,000
BLACKFLAME
EIS
Year 6
£150,000
BLACKFLAME
EIS
Year 5
£100,000
BLACKFLAME
EIS
Year 4
£100,000
BLACKFLAME
EIS
Year 1
£100,000
BLACKFLAME
EIS
Year 2
7. Using Blackflame’s EIS to Eliminate
Income Tax
£15,000
BLACKFLAME
EIS
Year 1
£15,000
BLACKFLAME
EIS
Year 2
£15,000
BLACKFLAME
EIS
Year 3
£15,000
BLACKFLAME
EIS
Year 4
£22,500
BLACKFLAME
EIS
Year 6
£22,500
BLACKFLAME
EIS
Year 5
£6,750
UPFRONT
TAX RELIEF
£6,750
UPFRONT
TAX RELIEF
£4,500
UPFRONT
TAX RELIEF
£4,500
UPFRONT
TAX RELIEF
£4,500
UPFRONT
TAX RELIEF
£4,500
UPFRONT
TAX RELIEF
8. Get out your
calculators!
£100,000 pension
£25,000 tax
free cash
£75,000 taxed x 40%
=£30,000 income tax
£100,000 invested in
Blackflame EIS
£100,000 x 30% tax relief
=£30,000 tax rebated
9. BLACKFLAME’S PENSION SOLUTION FOR
TAX IMPLICATIONS 2015
1.Most tax efficient solution £400,000 pension
fund £100,000
BLACKFLAME
EIS
YEAR 2
£100,000
BLACKFLAME
EIS
YEAR 3
£30,000
UPFRONT
TAX RELIEF
AGAIN INTO
BLACKFLAME
EIS
£30,000
UPFRONT
TAX RELIEF
AGAIN INTO
BLACKFLAME
EIS
£100,000
BLACKFLAME
EIS
YEAR 4
£30,000
UPFRONT
TAX RELIEF
AGAIN INTO
BLACKFLAME
EIS
£30,000
UPFRONT
TAX RELIEF
AGAIN INTO
BLACKFLAME
EIS
£45,000
UPFRONT
TAX RELIEF
AGAIN INTO
BLACKFLAME
EIS
£9,000
UPFRONT
TAX RELIEF
INTO AN ISA
£9,000
UPFRONT
TAX RELIEF
INTO AN ISA
£9,000
UPFRONT
TAX RELIEF
INTO AN ISA
£9,000
UPFRONT
TAX RELIEF
INTO AN ISA
£13,500
UPFRONT
TAX RELIEF
INTO AN ISA
£150,000
BLACKFLAME
EIS
YEAR 5
£100,000
BLACKFLAME
EIS
YEAR 1
10. Blackflame’s pension solution for tax
implications April 2015
2. Most “De risked” Tax efficient solution £400,000 pension
fund
£150,000
AXA
guaranteed
bond
£30,000
UPFRONT
TAX RELIEF
AXA
guaranteed
bond
£30,000
UPFRONT
TAX RELIEF
AXA
guaranteed
bond
£30,000
UPFRONT
TAX RELIEF
AXA
guaranteed
bond
£30,000
UPFRONT
TAX RELIEF
AXA
guaranteed
bond
£150,000
BLACKFLAME
EIS
YEAR 5
£100,000
BLACKFLAME
EIS
YEAR 4
£100,000
BLACKFLAME
EIS
YEAR 3
£100,000
BLACKFLAME
EIS
YEAR 2
£100,000
BLACKFLAME
EIS
YEAR 1
11. Year 8
4 years x £30,000 upfront tax relief into AXA
=£120,000
4 years x £150,000 encashments into AXA =
£600,000
Total = £720,000
Alternative for £400,000 pension fund taken in year
one
25 % tax free = £100,000
£300,000 to be taxed added to your annual income
12. BLACKFLAME E.I.S. EXEMPT AFTER
TWO YEARS FOR IHT
£1,000,000 estate less
£650,000 Nil rate bands
=£350,000 liable for 40% tax
=£140,000 IHT
£1,000,000 estate less
£650,000 two nil rate bands
=£350,000 held in Blackflames EIS
= No IHT to pay
13. WHY ARE THES OLD LADIES SUITABLE
INVESTORS FOR BLACKFLAME E.I.S.
14. Both have a power of attorney over their assets
with power of attorney you can not give client’s assets
away to solve inheritance tax
however, via POA they can invest in Blackflames EIS
held in their own names this will be exempt if they live
for two years .
TWO YEARS AND ONE MONTH LATER
THEY BOTH DIE FREE OF INHERITANCE TA
15. HOW TO EXTRACT PROFITS
FROM A LTD COMPANY FREE OF TAX
Nicholas is the director of a limited company and is a higher
rate tax payer. He takes £50,000 out in dividends.
£50,000
X25% tax paid on dividends
=£12,500
£50,000 invested into Blackflame EIS
X30% tax relief
=£15,000
Nicholas does this for four years and
then has £15,000 tax free income for life.
VIA THE ROLL OVER INVESTMENT METHODOLOGY INTO
BLACKFLAMES E.I.S.
ENJOYING HIS TAX FREE INCOME
FOR LIFE
16. Brian sells his cottage for £350,000
His capital gain is £100,000
He invests this in Blackflame EIS
The CGT is deferred and Brian claims the tax back every
three years using his CGT allowance
He dies and the CGT is eliminated on his death.
DEFERRING CAPITAL GAINS
TAX
17. ATTENTION LANDLORDS
Rental income can qualify for an Enterprise Investment Scheme
Rental income is not classed as relative earnings for a pension