YouTube video by Ndubuisi 'Andy' Egwim explaining legal strategies to reduce taxes by deferring capital gains and taking withdrawals in retirement taxed as income. The speaker describes allowing gains to compound tax-free until retirement and then withdrawing at potentially lower income-tax rates, giving numeric examples (e.g., withdrawing ~£12,570 a year could incur zero tax, larger withdrawals taxed at 20%).
Questions this video answers
£12,570 (speaker phrasing: '12,000, 570')
20%
50%
40% (as stated by the speaker)
Chapters
So rather than pay capital gains tax now, the government is going to contribute to my future by allowing me to keep all the money, allow it to compound in the stock market, allow me to invest it myself, allow me to invest it in commercial real estate or stock, stocks and bonds. And it grows. And by the time I'm hitting basically 55, 57, I want to draw it out. The government will not tax me at capital gains, they will tax me as income. The implication of that is that if I withdraw only 12,000, 570 in a whole tax year because I have other income, the only tax I'm going to have to pay is 0 pounds. So basically, this is how to work with the system, not letting the system to work against you. But imagine if you needed a bit more money, £150,000, then you can take up £50,000 and, and then your tax would be 20%. But remember, if you had paid tax on it while you were working as a consultant or registrar, or even a nurse, I think a nurse reached out to me on Instagram, he was paying 50% tax, so you would have had to pay 40% on that. But now you're able to take it after it has grown and compounded over the years, you're able to take it at even a lesser tax rate.
