Tax Efficient Investments
The team at Markland Hill Wealth have a depth of experience helping individuals, trusts, businesses and charities making the most of the money they hold.
Income Tax
Corporation Tax
Capital Gains Tax
Dividend Tax
Savings Tax
Stamp Duty
In the UK, there are several tax-efficient investment options available that can help individuals grow their wealth while minimising their tax liabilities. Here are some of the key tax-efficient investments:
Individual Savings Accounts (ISAs)
- Cash ISAs – Tax-free interest on savings.
- Stocks and Shares ISAs – Tax-free capital gains and dividends.
- Lifetime ISAs (LISAs) – Offers a government bonus of 25% on contributions, up to £4,000 per year, for first-time home buyers or retirement savings.
- Innovative Finance ISAs – Tax-free interest from peer-to-peer lending.
Pension Schemes
- Personal Pensions and Stakeholder Pensions – Contributions are tax-deductible, and investments grow tax-free.
- Workplace Pensions – Contributions from both employee and employer, with tax relief on personal contributions.
Enterprise Investment Scheme (EIS)
Offers income tax relief of 30% on investments up to £1 million per year, exemption from capital gains tax on disposals, and loss relief.
Seed Enterprise Investment Scheme (SEIS)
Offers income tax relief of 50% on investments up to £100,000 per year and exemption from capital gains tax on disposals.
Venture Capital Trusts (VCTs)
Offers income tax relief of 30% on investments up to £200,000 per tax year, tax-free dividends, and exemption from capital gains tax.
National Savings and Investments (NS&I)
Products like Premium Bonds and NS&I Direct ISA offer tax-free returns.
Buy-to-Let Property
Although subject to income and capital gains tax, there are ways to offset taxes through allowable expenses, mortgage interest tax relief (for older mortgages), and capital gains tax allowances.
In addition to these potential investment vehicles, there are also varying allowances that can be utilised such as dividend allowances, capital gains tax allowances and rental income allowance.
As these allowance and investment vehicles see their rules and limits changing on a regular basis depending on government, fiscal policy or economic conditions, the only way to stay on top of them is to appoint an Independent Financial Adviser to be on your side at all times. Markland Hill Wealth has a large advisory and support team to ensure your money works as hard as it possibly can to help you reach your life goals through sound financial planning.