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Configure any tax wrapper with the "Custom" Account in Timeline

 

Summary

  • Custom tax account enables advisers to model complex investment wrappers not supported by default in Timeline Planning.

  • A Configuration section offers granular tax controls such as withdrawal tax, capital gains tax, growth tax, and IHT exclusion.

  • Allows approximate modeling of all non-standard accounts

Description

Financial plans often include investments in accounts with complex tax treatments like Venture Capital Trusts (VCTs), Onshore Bonds, Loan Trusts, and more.

The Custom account type can become a powerful account to rule them all. The custom account has a Configuration section, which appears in the account page when a custom tax account is selected.

Advisers now have direct control over tax-related behaviours to reflect real-world account dynamics.

Tax controls in the Configuration box

 

These settings allow advisers to accurately replicate complex tax wrappers without needing one-to-one modeling for each wrapper type.

Example

🟦 1. Venture Capital Trust (VCT)

Tax characteristics:

  • No income tax on dividends.

  • No capital gains tax on disposal.

  • Must be held for 5 years to retain upfront income tax relief.

  • 30% income tax relief on investment. This needs to be added as a contribution

How to model it:

🟧 2. Onshore Bond

Tax characteristics:

  • “Gross roll-up” with 20% life fund tax paid internally — no ongoing personal tax during accumulation.

  • Top-slicing applies to withdrawals (income tax treatment at the marginal rate).

  • 5% per annum withdrawal allowance.

  • Full withdrawal after 20 years may trigger tax depending on personal circumstances.

How to model it:

🟩 3. Business Relief (BR) Scheme (e.g., AIM Portfolio)

Tax characteristics:

  • Qualify for 100% Inheritance Tax relief if held for 2 years and still held at death.

  • No special income or capital gains tax benefits — taxed as standard unwrapped investments.

 

How to model it:

Conclusion

The Custom tax account feature increases the coverage and flexibility of the financial plan. By empowering advisers to model a wide range of complex account types through configurable tax controls, we reduce reliance on external software and ensure plans remain compliant, transparent, and tailored to real-world client needs.