Investing Money in the Most Tax-Efficient Way Possible

Today, there are various tax-efficient ways of investing money. The problem is, many of these come with annual allowances. This means that you need to make your move before the tax year ends next April.

At N&S, we want to ensure that you’re investing money as tax efficiently as possible. As a result, we’ve compiled this list of tax- efficient investments we can help you make before the financial year ends on the 5th April 2019.

We’re dedicated to offering our clients a personalised service which is why we will always advise you according to your individual circumstances. Here is a guide to the various best investments to make in 2018 as well as the ways in which we can help you:

Best Investments to Make in 2018

ISAs

In 2017/2018, the general ISA limit was £20,000. The ISA ‘wrapper’ protects the investments from all income tax and capital gains. There are various types of ISA’s ranging from simple cash ISA’s to stocks and shares ISA’s as well as a lifetime ISA.

If you have children you can open a Junior ISA. This is a tax-free savings account in which under 18s can save up to £4,128 each year. The savings in this type of account remain tax-free until the account holder turns 18. Then, it becomes an adult account.

HMRC approved Venture Capital Schemes

There are 4 types of venture capital investments that come with generous tax breaks. These include:

• Enterprise Investment Scheme (EIS)
• Seed Enterprise Investment Scheme (SEIS)
• Venture Capital Trusts (VCT)
• Social Investment Tax relief (SITR).

Depending on the scheme you may be able to claim Income tax relief or income tax relief against a ‘loan’ to a social enterprise. You may also be able to claim capital gains tax relief on gains you make as well as capital gains relief when you reinvest a previous gain in a qualifying scheme.

At N&S, we can give you detailed information and advice about the following:

• The various forms of tax relief
• The shares that qualify for tax relief
• Loans that qualify for tax relief
• Selling your investment and getting tax relief

Additionally, we can save you a lot of time by claiming relief on your behalf.

Pension Savings

When it comes to investing money for retirement, pensions are a key element of how you save. The annual allowance limit is £40,000 and this goes down to £10,000 if you earn more than £150,000 a year. Not only this, the lifetime limit on a pension is £1 million.

Pension rules can be complex and we would always recommend seeking advice from a professional before making any major financial decisions.

Do You Need to Make a Claim?

When it comes to allowances, these aren’t always automatic. This means that you have to check whether you need to make a claim. Luckily, at N&S, we’ll be on hand to remind you of any deadlines and we’ll make any claims on your behalf so that you don’t miss out.

Our services apply to all the above but we can also help you with the following:

• Marriage allowances
• Trading and property income allowances
• Individuals looking to dispose of chargeable gifts in relation to inheritance tax and capital gains tax

We will ensure that we offer the right advice and tax planning to help you reach your long-term financial goals.

Contact N&S Today to Find Out More About Investing Money in the Most Tax-Efficient Way Possible

With so many tax-advantaged investments with annual allowances available, it can be difficult to know which ones you’re eligible for.

But, don’t worry. That’s where we come in.

We can advise on the most tax-efficient way of investing money. Better yet, we can undertake the entire process for you. From finding out whether you’re eligible to making your claims for you, our team has the expertise to help you save for your future in the most efficient way.

If you want to find out more about tax breaks and whether you’re eligible for any of them, contact us today. One of our friendly team members will be more than happy to run you through everything you need to know.