terms of growth. Full tax relief is also given at the individual's marginal rate on contributions or, in the case of an employer contributions, it is treated as an expense and is not taxed on the employee as a benefit in kind. Aside from a tax free lump sum of 25% of the fund, benefits taken from pension funds are taxable. Venture Capital Trusts These are investments in smaller companies or funds of holdings in such companies over a minimum term of five years. These are not taxable and qualify for 30 percent tax relief against an individual's income. Enterprise Investment Schemes A non-taxable investment into smaller company shares over three years that qualifies for 30 percent tax relief. The facility also allows an individual to defer capital gains liabilities (these gains can be stripped out in future years using the annual CGT allowance). Seed Enterprise Investment Schemes A non-taxable investment into smaller company shares over three years that qualifies for 50 percent tax relief. The facility also allows an individual to defer capital gains liabilities (these gains can be stripped out in future years using the annual CGT allowance). Insurance bonds These include offshore and onshore investment bonds issued by insurance companies. The main difference between the two is that corporation tax paid by the onshore bond means that gains in the onshore bond are treated as if basic rate tax has been paid (this cannot be reclaimed by zero or starting rate tax payers). With both versions up to 5 percent for each complete year of investment can be taken without an immediate tax liability (subject to a maximum total of 100 percent of the original investment). On this basis, investors can plan an income stream while deferring any chargeable withdrawals until they are on a lower rate of tax, are no longer a United Kingdom resident, or their death. Offshore trusts and companies Trusts can be offshore if all trustees are non-resident. Such trusts can own foreign-operated companies. Corporation tax rates can be lower in some countries and where we still have double taxation treaties. However, since anti-avoidance rules have been introduced for taxation of trusts, these structures are not advantageous for someone who will remain resident. Exceptions Many holdings and income from them are exempt for "historical reasons". These include: Special, low tax arrangements for the monarchy, such as the arrangement used by the British Royal