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 for individuals of up to £10,680 a year, of which no more than £5,340 may form part of the cash element.

National Savings (NS&I) schemes comprise index-linked certificates, fixed interest certificates and Premium Bonds.
On 7th September 2011, NS&I withdrew both its index-linked and fixed interest certificates from sale after very strong sales. Premium Bonds remain available up to a maximum investment of £30,000.

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 £10,600 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.