Andy Egwim explains how doctors can legally avoid a 60% tax trap. He contrasts tax avoidance with evasion, then shows how a Stocks and Shares ISA lets you skip the 24% capital gains tax you'd normally owe on investments.
How to avoid the 60% tax trap. As a doctor, that article has been read by many doctors. I'll give you an example. Many people didn't even know that they were in the 60% tax trap. They were overpaying tax without knowing it. If you do nothing about it. Tax avoidance is legal, but tax evasion is illegal. It's a jail term. It's avoidance. Legal means, but tax evasion, sort of like lying or trying to avoid tax in an illegal way. We don't teach any of that. We don't do any of that. We don't encourage it. Okay, Right now, Stock and Shares isa. Stock and Shares ISA is basically an account for investing. It's your investment account. If you make any investment from it, you get a return on your investment. Let's say your investment did well. I get a capital gain. So the value of your investment goes up. You don't have to pay tax on that. Normally you should pay 24% of that, but you don't have to pay tax on that.
