Tax Efficient Investments

Get maximum tax-free returns on your investments with the right mix of cash and equity plans. There are a wide range of savings and investment schemes that give tax-free returns:

ISAs (Individual Saving Accounts) come in different types giving access to investments in fixed interest, cash, equity and commercial property and allow investment of up to £7,200 a year.

In the Budget of 22nd April, new ISA rules were introduced. With effect from 6th October 2009, individuals aged 50 or over (on the 6th April 2010) have a maximum ISA allowance of £10,200 of which no more than £5,100 may form part of the cash element. All other individuals will benefit from this higher allowance from 6th April 2010.

National Savings schemes comprise index-linked certificates, fixed interest certificates and premium bonds. You can invest up to £15,000 in each certificate scheme, plus £30,000 in premium bonds.

Zeros (zero-dividend preference shares) are linked to INVESTMENT TRUSTSINVESTMENT TRUST
A company, quoted on the Stock Exchange, which invests in other companies’ shares. and pay out a pre-set return, provided the trust has performed to a specified level. They can provide a tax-free income of up to £9,600 per year by utilising your CAPITAL GAINS TAXCAPITAL GAINS TAX
The tax payable on profits made on the sale of assets or property other than your home. allowance.

VCTs (Venture Capital Trusts) offer the biggest tax breaks for those prepared to invest a high proportion in qualifying unlisted trading companies, including those listed on the Alternative Investment Market. Your investment can be up to £200,000 a year and is committed for at least 5 years.

Enterprise Investment Schemes allow you to invest up to £500,000 in a single qualifying company worth less than £7 million before and £8 million after making the investment. If held for three years, your investment gain will not be liable for Capital Gains Tax.

As investments, VCTs and EISs carry a certain amount of risk and are generally most suited to those with specific circumstances, knowledge and experience.

Impartial independent financial advice is vital in this area. Contact us to arrange a free initial consultation to explore all the opportunities.