BUSINESS & INVESTMENTBY

TITUS WOLE ODEDUNCONSULTANT IN ACCIDENTS, TRAUMA

& AESTHETICS SURGERY AND ORTHOPAEDICS

LONDON MEDICAL & RESEARCH CENTRE142-146 HARLEY STREET

LONDON W1G 7LD

WHY BUSINESS

WHY INVESTMENT

Life expectancy is increasing Pensionable age increasing Actual value of pension decreasing Overall tax burden increasing Cost of living increasing Increasingly difficult to educate children

properly on current pay scales Increasingly difficult to acquire decent home

on current pay scales There is fun in business & investment

Starting a small businessSet up costType- Sole Trader

PartnershipLimited Company

Advantages/Disadvantages of each (fig 1)

(including taxation issues)Raising Capital

BUSINESS

When will Bank rate rise?

CEBR Q1 2016Capital Economics Q1 2015John Charcol Q1 2014Deutsche Bank Q4 2013Item Club Q1 2013Economic Perspectives

Q4 2012

Book-keepingAccountancyVAT- Threshold

AdvantageDisadvantage

HMRC

BUSINESS (cont’d)

ESTABLISHED BUSINESS

PURCHASINGSELLING/FRANCHISINGFLOATATION - Facebook

Lastminute.comConfused.com

BUSINESS (cont’d)

A.CHILDREN

EDUCATIONEDUCATIONEDUCATION

INVESTMENT

B. OTHER

Real Estate -LandResidentialCommercial PropertyBuy to let

INVESTMENT (cont’d)

Banks & Building SocietiesISA’s

City Based - EquitiesForexCommoditiesBonds

ForestryFine ArtsVintage WinesAntique Furniture

INVESTMENT (Cont’d)

Russia

Brazil

India

USA

China

France

Germany

UK

0% 10% 20% 30% 40% 50% 60%

TOP STATUTORY RATES OFPERSONAL INCOME TAX

USA

Brazil

Germany

UK

0% 5% 10%

15%

20%

25%

30%

35%

40%

45%

MAIN CORPORATION TAX RATES

France

India

China

Russia

ResidentialProperty 15%

Equities15%

Others15%

Fine Arts& Collectibles10%

BALANCED INVESTMENT PORTFOLIO

CommercialProperty 45%

£125,000 1%(1ST TIME BUYER) 0%£250,000 3%£500,000 4%£1,000,000 5%

CURRENT STAMP DUTY ONPROPERTY PURCHASE

THOROUGHBRED (RACE) HORSES

CARS - VETERANVINTAGECLASSICMODERN

INVESTMENT (cont’d)

LOOK FOR A GAP IN THE OPEN MARKET PLACE

E.G. PORTABLE DEFIBRILLATORINTERNATIONAL NURSING HOMESRETIREMENT ABROADSOLAR POWER

INVESTMENT/BUSINESS IDEAS

Business with little capital requirement:

GoogleFacebookTwitterBeboLastminute.comConfused.com

INVESTMENT/BUSINESS IDEAS(Contd’d)

USA – A pricey but popular retirement destinationCost/Requirements of entry - EB-5 Immigrant Investor

visa requires £314,000 – £627,000.Monthly living costs, food drink - £950 pm. Bottle of

wine £6. Meal out for two £25.Average 2 bed house price - £115,000.Average return air fare - £340.Income tax rates – varies between states. No income

tax and low property and sales taxes in eight states inc Florida.

Medical cover: £300-£500 pm. Dental £22-32 pm.Reciprocal state pension: No

WHERE TO RETIRE

IRELAND – No language barrier and simple entry procedure

Cost/Requirements of entry – Nil. EU citizens have right of residence

Monthly living costs, food & drink - £1,500pm for reasonable standard of living. Bottle of wine £7.50. Meal out for two £45.

Average 2-bed house price - £190,000.Average return air fare - £40-75.Income tax rates – Residents pay tax on their world-wide

investments including pensions, both state and private.Healthcare – The EHIC entitles you to free basic healthcare.Reciprocal state pension: Yes

WHERE TO RETIRE

SPAIN - The most popular destination, due to climate and living costs.

Cost/Requirements of entry – Nil. EU citizens have right of residence.

Monthly living costs, food & drink - £1,300pm. Bottle of wine £3.50. Meal out for two £35-40.

Average 2-bed house price £150,000.Average return air fare - £70.Income tax rates – Personal allowance of £2,200 – 3,400,

above which tax is applied at 24-43%. Tax rates on an annuity 4-5%.

Healthcare - The EHIC entitles you to free basic healthcareReciprocal state pension: Yes

WHERE TO RETIRE

MALTA - Low tax rates and year-round heat make this a top spot.

Cost/Requirements of entry – Nil. EU citizens have right of residence.

Monthly living costs, food & drink - £600pm. Bottle of wine £4. Meal out for two £30.

Average 2-bed house price - £180,000.Average return air fare - £40 – 80.Income tax rates – No tax on pension income from outside

Malta. No inheritance, wealth, or annual property taxes.Healthcare – The EHIC entitles you to free basic

healthcare.Reciprocal state pension: Yes

WHERE TO RETIRE

FRANCE – Most move to France for a better quality of life.Cost/requirements of entry – Nil. EU citizens have right

of residence.Monthly living costs, food & drink - £1,500pm. Bottle of

wine £5. Meal out for two £35.Average 2-bed house price - £180,000.Average return air fare – Paris £70, Nice £130.Income tax rates – State, private or occupational

pensions are taxable as are lump sum pension payments in excess of £5,100 (tax free in the UK.

Healthcare – The EHIC entitles you to free basic healthcare

Reciprocal state pension: Yes

WHERE TO RETIRE

CROATIA - Affordable living, low tax and tope weather. On the rise.

Cost/Requirements of entry – Nil. But plenty of red tape.Monthly living costs, food & drink - £600pm. Bottle of

wine £4. Meal out for two £22.Average 2-bed house price - £120,000.Average return air fare - £70.Income tax rates- - pensions received from abroad are

tax free.Healthcare – Reciprocal agreement entitles pensioners to

hospital, medical and dental treatment (excludes medicines).

Reciprocal state pension: No

WHERE TO RETIRE

TURKEY – Cheap living costs, dry climate and few entry barriers.

Cost/Requirements of entry – visa on arrival. Evidence of adequate (unspecified) retirement income.

Monthly living costs, food & drink - £1,000pm. Bottle of wine £6. Meal out for two £15-20.

Average 2-bed house price - £60,000 – 100,00 (most retirees rent).

Income tax rates – no tax on pension income. Inheritance is 1% on the first £67,500, 3% n the next £148,000.

Healthcare – private medical/dental insurance is necessary.Reciprocal state pension: No

WHERE TO RETIRE

EGYPT – Affordable property and low tax rates. Good alternative.

Cost/requirements of entry – Foreign property owners can obtain a renewable 5-year residence permit.

Monthly living costs, food & drink - £400pm. Bottle of wine £7. Meal out for two £18.

Average 2-bed house price - £60,000. Flat £20,000. (most retirees rent).

Average return air fare - £240.Income tax rates – No capital gains tax, no inheritance tax.Healthcare – Medical/dental services are cheap but private

medical insurance should be taken out.Reciprocal state pension: No

WHERE TO RETIRE

AUSTRALIA – Expensive but ever popular destination for Brits.

Cost/requirements of entry - £283,000-425,000 and income of £28,000 – 37,000 (by state).

Monthly living costs, food & drink - £2,500. Bottle of wine £5. Meal out for two £20-25.

Average 2-bed house price - £250,000.Average return air fare - £600-700, city dependent.Income tax rates – six-month window to transfer pension

benefits without incurring any tax.Healthcare – Reciprocal agreement entitles pensioners to

emergency treatment.Reciprocal state pension: No

WHERE TO RETIRE

MALAYSIA – Rock bottom tax and low living costs. Great prospect.

Cost/Requirements of entry – Requires income of £2,000pm and about £70,000 in liquid assets.

Monthly living costs, food & drink - £1,000pm. Bottle of wine £6. Meal out for two £15-20.

Average 2-bed house price - £60,000-100,000 (most retirees rent).

Average return air fare - £500.Income tax rates – No tax on income from outside Malaysia.

No inheritance nor capital gains tax.Healthcare – Medical/dental services are cheap but visa

immigrants are required to have medical insurance.Reciprocal state pension: No

WHERE TO RETIRE

Older, Wiser, WealthierJapanese Household wealth, by age

group Ytrn, 2008

0 5 10 15 20 25 30

70 & Over

60-69

50-59

40-49

30-39

29 & Under

Population, m

(39m)

(19m)

(16m) (19m)

(16m)

(19m)0-100 200 300 400 500

BUSINESS/INVESTMENT IS A CLASS A DRUG

BEWARE, KNOW WHEN TODRAW THE LINE!

CAUTION!!

If I have seen further than others

It is because I stood on the shoulder of giants!

Sir Isaac Newton