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Cash Windfall


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I done a wee business deal a few years ago and it looks as if it is going to pay off in the next 12-18 months. I'll be looking at a one off windfall of about £150K. I'm just wondering how best to deal with it from a tax point of view. I want to pay tax but a bit sore at losing over half of it given that it's a one-off sum and I've been paying tax through PAYE anyway.

Anyone got any advice onthe best legal way to minimise the tax I have to pay?

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I done a wee business deal a few years ago and it looks as if it is going to pay off in the next 12-18 months. I'll be looking at a one off windfall of about £150K. I'm just wondering how best to deal with it from a tax point of view. I want to pay tax but a bit sore at losing over half of it given that it's a one-off sum and I've been paying tax through PAYE anyway.

Anyone got any advice onthe best legal way to minimise the tax I have to pay?

Half under the mattress and half to the following Swiss bank account....... :lol:

Nice one - hope you find a way of keeping most of it :ok:

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Thanks for the suggestions!

A maté said I should get it paid into my Paddy Power account so that it looks like tax free winnings when it arrives into my bank account. Creative.

You can't do that, they have quite a lot of things in place to stop money laundering.

(You'd have to pay the winnings into the account you deposited from, being the most basic and effective one in this case).

You could get it in £1 coins and run it through fruit machines, that seems to work....

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I done a wee business deal a few years ago and it looks as if it is going to pay off in the next 12-18 months. I'll be looking at a one off windfall of about £150K. I'm just wondering how best to deal with it from a tax point of view. I want to pay tax but a bit sore at losing over half of it given that it's a one-off sum and I've been paying tax through PAYE anyway.

Anyone got any advice onthe best legal way to minimise the tax I have to pay?

this is all strictly legal.

http://www.nationwide.co.uk/guides/looking-after-your-money/windfalls-and-inheritance

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I done a wee business deal a few years ago and it looks as if it is going to pay off in the next 12-18 months. I'll be looking at a one off windfall of about £150K. I'm just wondering how best to deal with it from a tax point of view. I want to pay tax but a bit sore at losing over half of it given that it's a one-off sum and I've been paying tax through PAYE anyway.

Anyone got any advice onthe best legal way to minimise the tax I have to pay?

You shouldn't lose half, if it's an investment then it's surely Capital Gains tax not Income tax, so 28%. Still not great, but not as bad. If you're a lower rate tax payer then you can use what's left of your allowance to pay 18%.

Also depends what you want to do with it - if you're planning to invest it long term there may be something you can do around a pension contribution which should exempt you from a whack of tax. Or if you want to stick it away for kids' education, there should be an option about a trust fund.

An accountant might have some better ideas than most of the muppets on here.

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Thanks for the suggestions!

A maté said I should get it paid into my Paddy Power account so that it looks like tax free winnings when it arrives into my bank account. Creative.

Your mate's either a muppet or trying to get you put in jail.

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spend 10 bob and set up a limited company and open a business bank account. Since this is the consequence of an investment or advice you gave, you can claim it is payment to your company for consulting services. Then get a good accountant who will minimise your overall liability to around 20-25% tops...

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