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Cap_Scarlet
Posts: 30 Forumite
I have an early retirement / deferred income scheme which works as follows:
I contribute a percentage of my gross earnings to the scheme (currently 6%, rising to 8%). The total contribution is multiplied by a "factor" which gradually reduces over time. This factor more than doubles the contribution.
The scheme pays out over 5 years starting on my 60th birthday. The payout is 7% for the first four years with the balance payable on the 5th anniversary.
I assume this means that - as I am paying in gross - that the receipts will then be taxable?
What would be the best way to avoid / mitigate that tax?
I have seen that Cyprus taxes pensioners at 5% but to be honest I don't really fancy living in Cyprus.
Any other thoughts?
I contribute a percentage of my gross earnings to the scheme (currently 6%, rising to 8%). The total contribution is multiplied by a "factor" which gradually reduces over time. This factor more than doubles the contribution.
The scheme pays out over 5 years starting on my 60th birthday. The payout is 7% for the first four years with the balance payable on the 5th anniversary.
I assume this means that - as I am paying in gross - that the receipts will then be taxable?
What would be the best way to avoid / mitigate that tax?
I have seen that Cyprus taxes pensioners at 5% but to be honest I don't really fancy living in Cyprus.
Any other thoughts?
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