Hi,
Does this strategy make sense to minimise tax in early retirement (married couple);
Bond interest returns @ €53,000 p.a.
= Maximises cut off allowance in 2025.
Then, for additional income, rather than earn more from bond returns; sell shares and pay CGT at max 33% vs. marginal of 40% +3% USC +4% PRSI.
Edit: just seen a key post by Brendan. Is it possible that my wife earns an additional €10k bond return income over €53k and thus we don’t pay inc tax on that at high rate but rather 27% (20+3+4)? Would this likely be more tax efficient that selling shares?
Does this strategy make sense to minimise tax in early retirement (married couple);
Bond interest returns @ €53,000 p.a.
= Maximises cut off allowance in 2025.
Then, for additional income, rather than earn more from bond returns; sell shares and pay CGT at max 33% vs. marginal of 40% +3% USC +4% PRSI.
Edit: just seen a key post by Brendan. Is it possible that my wife earns an additional €10k bond return income over €53k and thus we don’t pay inc tax on that at high rate but rather 27% (20+3+4)? Would this likely be more tax efficient that selling shares?
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