Borrowing to pay tax
Originally sent: July 19, 2004Some of you, even those who are not Scotsmen, probably read the article in The Scotsman about the very large number of taxpayers who borrowed the money to settle their final tax bill last January.
None of us really likes borrowing. Certainly we don?t like paying the interest! But the one good thing about borrowing is usually what we can do with the cash when we have borrowed it. Borrowing all that money (?46,000,000 according to The Scotsman) and then having to pay it over to the taxman is certainly not my idea of fun. At least if you max out your credit card you usually have the pleasure of enjoying all the things you bought!
Of course, if a client is prepared to borrow in order to pay an income tax bill, then why not suggest borrowing in order not to pay the bill? There are a number of ways to achieve this. One of these is with a film partnership. Yes, I did say a film partnership! Did you think these were dead? Not if your client is prepared to borrow! And a film partnership is not the only way your client can reduce income tax and capital gains tax if he or she is prepared to borrow in order to achieve this objective.
Adviser Breakthrough Training Solutions Ltd. takes no responsibility for loss occasioned by any person acting or refraining from action, or in consequence of any other person acting or refraining from action, as a result of the material in this article.
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